China posts slowest annual economic growth in 25 years

The figure was in line with a median 6.9% increase forecast by 15 economists polled by The Wall Street Journal.

BEIJING, Jan 19 China’s economy grew 6.8 percent in the fourth quarter from a year earlier, matching expectations and the slowest since the global financial crisis, putting pressure on Beijing to roll out more support measures as fears of a sharper slowdown panic investors.

Economic growth for the three months to December-end is likely to come in 6.8 percent, compared to the same period the previous year, and down from 6.9 percent on-year growth in the third quarter, according to a Reuters poll.

But, Prasad said that whether China’s growth-rate is actually closer to 6 percent or 8 percent right now, what matters most is the direction and pace of China’s gradual slowdown, along with its transition to a more market-driven, consumer-oriented economy. The country’s currency, the yuan, has fallen against the dollar.

China does not intend to use a cheaper yuan as a way to boost exports and has the tools to keep the currency stable, Chinese Premier Li Keqiang said in a meeting with the president of the European Bank for Reconstruction and Development, state news agency Xinhua reported Saturday.

The result comes amid widespread concern about China’s ability to handle the slow down, a crisis of confidence which has caused ructions across global markets so far in 2016. Retail sales growth cooled to 10.6 percent from 2014’s 12 percent.

Asian shares largely turned negative following the data release.

And, Prasad pointed out, even with growth in the mid-single digits, China remains a global economic powerhouse and driver of global growth.