YEAR on year growth for the Chinese economy has held at 7.5 per cent, the second quarter that has registered a slower pace than the country has been used to in recent years.
Growth in the three months to June, compared to the first three months of the year, was only 1.7 per cent according to government data published yesterday – lower than expected by analysts.
Industrial production grew by 8.9 per cent in the year to June, lower than the previous month and also significantly lower than the historical trend.
Nomura, the Japanese financial services conglomerate, cut its estimates for China’s 2014 growth from 7.5 per cent to 6.9 per cent.
If the country’s increase in GDP decreases to below seven per cent, it would be the slowest expansion in over twenty years for China, which enjoyed several years of double-digit growth before the financial crisis.
Nomura economist Zhiwei Zhang added that there are demographic issue of concern in the economy: “The size of the working-age population fell in 2012 – for the first time in at least 20 years – and will likely continue to slide in 2014 and beyond”.