Chinese economy grew at its slowest pace in 13 years posting 7.8 per cent year-on-year growth in 2012 amid external jitters and domestic woes.
Data released by the National Bureau of Statistics showed that the growth rate, the weakest expansion in 13 years, was down from 9.3 per cent in 2011 and 10.4 per cent in 2010.
The economy’s fourth-quarter growth quickened to 7.9 per cent on Government’s pro-growth measures. The rate ended a seven-straight-quarter slowdown, according to the data.
In 2012, the gross domestic product reached 51.93 trillion yuan ($8.28 trillion). The growth rate, however, is still marginally higher than the 7.5 per cent target fixed by the Government.
GDP target
The Chinese economy, mainly driven by exports, has missed its double-digit growth posting 9.3 per cent, the data showed. The GDP for 2011 stood at 47.29 trillion yuan ($7.45 trillion).
There were apprehensions whether the GDP would miss the official target when it posted 7. 4 per cent growth in the third quarter this year, but it picked up in the last three months mainly driven by Christmas and New Year sales in the last three months of the year.
Stimulus measures
Analysts said stimulus measures introduced by the Chinese Government have averted further slowdown. The Government stimulus measures introduced since early 2012 have produced results, the state-run Xinhua news agency report said.
“They have helped reverse the slowdown and stabilise the growth,” Wang Jun, an economist at the China Center for International Economic Exchanges, one elite think-tank in Beijing, said.
GDP figures headed a string of other encouraging economic data on Friday.
Retail sales, a key indicator of consumer spending, rose 15.2 per cent from a year earlier in December, up from 14.9 per cent in November, the report said.
The growth of industrial production accelerated to 10.3 per cent year-on-year in December from November’s 10.1 per cent pace.
Fixed-asset investment, a measure of government spending on infrastructure, also increased 1.53 per cent from November to December.
Export data
China’s exports, a key driver of the economy, also trumped market forecasts to grow 14.1 per cent year-on-year in December, up from November’s 2.9 per cent, customs data showed last week.
“I think the economy’s growth has been stabilised, but whether the rebound will continue remains unclear,” said Zhang Liqun, an analyst with the Development Research Center of the State Council, said.