China's growth slowed by service, farm sectors, despite construction rebound

Economic activity suffered a sharp drop in the fourth quarter of last year

China's economic growth rate in 2018 slipped to its lowest level in almost three decades, raising concerns over whether Beijing has done enough to arrest the deepening slowdown, at a time when the external environment is turning hostile and a mountain of debt at home is restricting the scope for additional stimulus.

China's economy grew 6.6% past year, according to official data released Monday - its slowest pace since 1990.

While in line with analyst expectations, it was slower than the 6.8 per cent posted the year prior, according to official data.

The slowing Chinese economy, and the increasing constrictions on government stimulus, come at a significant turning point in the world economy, with all major worldwide economic bodies warning of a global slowdown and increased risks in 2019.

Trade frictions' influence to market confidence became more apparent in the fourth quarter, weighing on China's economic growth, said Cong. That risks disappointing the investors and business leaders descending on Davos for the World Economic Forum's annual meeting and who are already concerned by trade wars, the U.S. government shutdown and Brexit. The slowing growth, which comes amid falling demand for exports and slower domestic spending, has put pressure on authorities to resolve the trade dispute with the US.

China expanded at 6.6% in 2018, official figures out Monday showed.

Beijing has also said it will pass other measures to stimulate growth, including cutting taxes and making it easier for banks to lend.

A Bloomberg gauge that estimates monthly GDP rose to 6.6 percent in December from 6.35 percent a month earlier.

"China-US economic and trade frictions do indeed affect the economy, but the impact is generally controllable", said Ning.

It accounts for one-third of global growth.

On the other hand, Indian buyers of Chinese goods may benefit by possible reduction in prices as China-based companies scramble for new orders.

"If China continues with its measured and piecemeal approach to stimulus, global growth will continue to lose momentum", said Katrina Ell, an economist with Moody's Analytics in Sydney.

But there were some signs of resilience in the world's second biggest economy.

In case you are still wondering why China's economy has the potential to drag on the whole world's economy, this infograph shows the way that the global GDP is formed. Beijing has broadcast this for several years, that it's going to focus on the quality not quantity of growth.

As fears for a sharp slowdown mounted amid uncertainties over whether the trade war will be brought to an end any time soon, Beijing has been drumming the message that it has plenty of room to deploy measures to spur economic growth.

"The most important driver really has been the credit deceleration and the concerns about financial imbalances on the part of the policy makers that has led them to pursue stricter policies", he said.

Apple assembler Foxconn let go of about 50,000 contract workers since October past year at the company's iPhone assembling factory at Zhengzhou City, the capital of China's Henan Province, according to a January 18 report by Japanese media Nikkei.

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