China economy expands 7.4% in 2014, weakest in 24 years
January 20, 2015, 5:54 am

Chinese Premier Li Keqiang hosts the fourth plenary meeting of the State Council in Beijing, capital of China, Jan. 19, 2015 [Xinhua]

The reading was slightly below the government target of around 7.5 per cent for the year, as authorities are at pains to transform the economy onto a more sustainable track while tackling a housing slowdown, softening domestic demand and weak global recovery.

“As the global economy is undergoing a deep restructuring and slow recovery, China’s government will likely face heavy tasks in tackling the difficulties,” Chinese Premier Li Keqiang said on Monday.

Li, however, stressed the “Q1 (first quarter) performance is crucial to the whole year’s results, and the government shall work on making a good start this year”, said Chinese agency Xinhua.

China’s 2014 gross domestic product reached 63.65 trillion yuan ($10.4 trillion). Growth in the fourth quarter came in at 7.3 per cent, flat with the rate seen in the third.

“The economy is maintaining steady operation under the new normal, with positive trends of stable growth, optimized structure, enhanced quality and improved social welfare,” noted Ma Jiantang, head of the NBS at a press conference.

In 2014, China’s industrial output grew 8.3 per cent, down from the 9.7-per cent growth seen in 2013, while growth of China’s fixed-asset investment slowed to 15.7 per cent. Retail sales went up 12 per cent to 26.24 trillion yuan, NBS data showed.

Meanwhile, the International Monetary Fund on Tuesday sharply cut its 2015-2016 world growth forecast owing to weak prospects in Japan, the Eurozone and slowing growth in China and Russia.

The IMF said in a statement it expected world growth to clock just 3.5 per cent this year and 3.7 per cent in 2016.

China, the second largest economy, will expand at 6.8 per cent this year — 0.3 per cent slower than previously expected — and 6.3 per cent in 2016, the IMF said.

The IMF warned the impact of slower Chinese growth will spill over especially to other Asian countries.

The Eurozone is expected to expand 1.2 per cent in 2015, and 1.4 per cent next year.

The forecast for Russia said the economy will contract 3.0 per cent this year and 1.0 per cent in 2016.

Source: Agencies