China's Economy Falls Less Than 7%, Weakest Since 2009

China’s economy grew 6.8% in the fourth quarter from a year earlier, the weakest pace of growth since the first quarter of 2009. That was in line with market expectations and down from growth of 6.9% in the previous three months. 

Full-year growth was 6.9%, the slowest pace of expansion in a quarter of a century but roughly in line with the government's growth target of around 7%.

A separate report showed that industrial production rose by an annualized rate of 5.9% in December, below expectations for a 6.0% increase and following a gain of 6.2% in the preceding month.

Data on fixed asset investment and retail sales also missed forecasts, reinforcing views that Beijing will roll out further support measures soon for the world's second largest economy. 

For the third time in less than a year, the International Monetary Fund has cut its global growth forecasts, citing a sharp slowdown in China, weak commodity prices and rising interest rates in the U.S.

The IMF now predicts that the global economy will grow 3.4% in 2016 and 3.6% in 2017, compared to previous estimates of 3.6% and 3.8% respectively.


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