China reports GDP for Q1
The National Bureau of Statistics (NBS) has revealed that China’s economy slowed to 6.1% in the first three months to the end of March – the weakest growth since quarterly records began over 16 years ago.
In the last three months of 2008, growth was 6.8% and China’s Government is hoping to achieve annual growth of 8%.
In comparison, from 2003 to 2007, China saw double-digit growth and recorded 9% growth in 2008.
However the economy, which is the third largest in the world, has been hit by rising unemployment after tens of thousands of factories were closed amid falling exports.
A 4 trillion yuan (£399 billion) stimulus package has already been implemented by China to boost economic activity.
Earlier this week, it was announced that Singapore’s economy contracted by 19.7% for the January to March period – the largest quarterly contraction on record.
Export-dependent Asian nations are struggling with the worst economic slowdown since World War II.
Singapore was the first Asian country to report GDP figures for the first quarter 2009 and its poor performance suggests that the region’s most export-dependent economies (Japan, South Korea, Taiwan and Hong Kong) may face deeper recessions than previously anticipated.
However, returning to China, Prime Minister Wen Jiabao said the economy is showing some signs of recovery.
The PM said there are some “positive changes” but the economy still faces “very big difficulties.”
Xing Zhqiang, analyst at China International Capital Corporation in Beijing, told the BBC that “the most difficult time for China’s economy has passed, as the surge in investment has partly offset the negative impact from declining exports.”
Finally, the NBS said consumer price index (CPI), China’s main gauge of inflation, declined 0.6% in the three month period, compared with the same period a year ago.
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