China's GDP Growth Rate Continues to SlowJuly 12, 2012 @ 10:32 PM EST
China Update: GDP Growth Continues to Slow
China’s National Bureau of Statistics reported Friday that GDP slowed to an annual rate of +7.6% in Q1. This was above the FactSet consensus of +7.5% and in line with the Reuters consensus estimate of +7.6%. China’s GDP growth rate was +8.1% in the first quarter of 2012 and +8.9% in the fourth quarter of 2011.
Estimates for GDP growth in the world’s second-biggest economy in a Bloomberg News survey of 38 analysts ranged from 7.3 percent to 9.3 percent, with all except one predicting a slowdown from the first quarter.
The decline from the rate seen in Q1 marked the sixth consecutive quarter of slowing growth and was the weakest rate seen since 2009.
For reference purposes, the Chinese economy had grown at a +9.1% rate in the third quarter of 2011 and at a 9.5% rate in the second quarter of 2011.
In related economic news, Industrial Output rose by +9.5%, which was below the consensus for an increase of +10.0%.
In addition, Retail Sales grew by +13.5% on a year-over-year basis, which was in line with the FactSet consensus but below Q1’s rate of +15.2%.
Analysts expect the weak data to encourage more monetary easing from the People’s Bank of China.
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