Economic Data Reveals Mixed Fortunes for China
Two of the biggest indicators of China’s economic performance have been released by the country’s financial department. The data in question suggests that, rapid growth aside, there have been one or two signs to give the markets cause for concern, especially when it comes to the growth of the country’s GDP.
Figures released for the final quarter of 2012 and the year as a whole show that quarterly growth stood at 2.0%, slowing from 2.2% growth posted in the previous quarter. This news is seen as being a little disappointing, especially as expectations of higher growth were held by many. The year-on-year figure for GDP growth stood at 7.9%, 0.1% higher than the consensus suggested.
“Although recent Chinese data has been stronger than anticipated, the latest GDP result fell within general expectations of +7.9%..”, Chinese GDP grew by a more impressive 9.3% in 2011, making the figures coming out of Beijing seem all the more disappointing.
Better news for the emerging economic force came in the form of its monthly retail sales data. Figures for December showed that month-on-month sales growth stood at 1.53%, a slight rise on the 1.475 registered in November. This figure alone gives a little bit of encouragement for the markets.
The year-on-year figures show that retail sales in China had risen by 15.2%, 0.1% higher than the market consensus hinted at, but the yearly figures provide less optimism. 2012 saw retail sales increase by 14.3% compared to a much larger 17.1% in 2011.
Despite impressive figures, there are one or two signs that the rapid growth being experienced by the Chinese economy could be about to slow a little. This may give markets at home and abroad reason to panic, although there is time for the trend to reverse in 2013.
John I. is an IT service professional with extensive experience in Business Management, Business Analysis, and Solutions Consulting. With a proven background in business strategy he has worked on behalf of Britain’s biggest companies Visit: financial-chaos.com and financeblognews.com