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.

Related News:

  • S Korea, US foreign ministers hold talks on N Korea

    S Korea, US foreign ministers hold talks on N Korea

    He became the first North Korean official since Jo Myong-rok, Kim Jong-il's envoy in 2000, to spend a night in the US capital. He reportedly said that China supported US-North Korea summits and hoped the two sides "will meet each other halfway".
    Phil Mickelson fires career-best 60 in first round of Desert Classic

    Phil Mickelson fires career-best 60 in first round of Desert Classic

    An eight-foot birdie putt at the fifth sparked a string of three straight birdies and he picked up one more shot at the ninth. But his approach shot on 17, with a sand wedge, left him with a longer putt than he had hoped for.
    Kyrie apologizes to LeBron for 'being that young player' in Cleveland

    Kyrie apologizes to LeBron for 'being that young player' in Cleveland

    I wanted to be the leader. "There were some bad habits and maybe not knowing what it means to sacrifice and take a back seat to someone like a LeBron, who was trying to teach us how to win".
  • Giuliani backtracks on comments Trump sought Moscow deal throughout 2016

    Giuliani backtracks on comments Trump sought Moscow deal throughout 2016

    I don't think, as a lawyer, I ever said anything that's untruthful. "Trump's done a darn good job as president, '" Trump Jr. said. Discussions about a planned construction project were ultimately abandoned and no contract was signed.
    Kvitova makes Open semis, puts attack behind her

    Kvitova makes Open semis, puts attack behind her

    The five-time Grand Slam victor wasn't going to bow out this way winning the next three games to bring it to 3-4 in the third set. She has gone out in the first round four times, in the second round three times (once to Laura Robson), in the third round once.
    Mariah Carey and ex-manager accused by ex-assistant of abuse

    Mariah Carey and ex-manager accused by ex-assistant of abuse

    Lianna Shakhnazaryan has filed a legal case against the pop star and Stella Bulochnikov in Los Angeles. It comes after the eight-month battle between Carey and Bulochnikov was said to have been resolved .
  • Bulls officially complete deal for Anthony

    Bulls officially complete deal for Anthony

    According to ESPN's Adrian Wojnarowski , the Rockets have agreed to trade the 10-time All-Star and cash to the Chicago Bulls . If a roster spot eventually opens with Los Angeles, the Lakers could be a possible destination for him.
    Former Alabama QB Jalen Hurts Transferring To Oklahoma

    Former Alabama QB Jalen Hurts Transferring To Oklahoma

    As a sophomore, Hurts guided Alabama to a 13-1 record and another appearance in the national title game. Neither Miami nor Maryland were going to contend for the national championship next year.
    Valiant Dhoni and Chahal win the series for India!

    Valiant Dhoni and Chahal win the series for India!

    Kedar Jadhav scored a winning boundary as India chased down the small target of 231 runs with four balls to spare. Anyone who bats at four will have to take the responsibility for the world cup whoever it might be.
  • Ice a concern as winter storm treks east

    Ice a concern as winter storm treks east

    Ice was also a possibility in some areas in the path of the storm, which was forecast to dump up to 2 feet of snow . Trump claims it "wouldn't be bad to have a little of that good old fashioned Global Warming right now" in a tweet.
    Serena Williams' awkward entry at the Australian Open

    Serena Williams' awkward entry at the Australian Open

    Serena Williams proved too strong for top seed Simona Halep as she booked her spot in the quarter-finals of the Australian Open . Prior to the match however, Williams was left re-faced after MC and Nine commentator Cameron Williams introduced the players.
    West Ham United Lining Up A Move For Maxi Gomez

    West Ham United Lining Up A Move For Maxi Gomez

    West Ham have won six of their past nine league games, as many victories as in their previous 24 matches. West Ham travel to Bournemouth on Saturday as they look to continue their impressive run of form.


Most liked

Storm threatens another round of Midwest snow, frigid weather
A band of snow will move through Peel tonight with most areas getting two to five centimetres of snow, Environment Canada said. A strong cold front will pass through the region with rain changing to a light wintry mix, then freezing drizzle.

Senator Kirsten Gillibrand makes 2020 presidential run official
In her announcement, she introduced herself as a young mom who will "fight for other people's kids as hard as I fight for my own". Kirsten Gillibrand , D-N.Y., speaks October 25, 2018, during the New York Senate debate hosted by WABC-TV, in New York.

Serena consoles Ukrainian teen after sailing into last 16
She will face the victor of older sister Venus and top seed Simona Halep for a place in the quarter-finals. Muguruza now faces the Czech Republic's Karolína Plíšková, who beat Italy's Camila Giorgi 6-4, 3-6, 6-2.

Winter storm warning issued for northeast IN , northwest Ohio | Weather
In Detroit, many motorists were moving well below posted speed limits along freeways due to slushy conditions. In addition to making travel extremely hard or impossible, this amount of icing often leads to power outages.

Kamala Harris Announces She's Running for President in 2020
Kamala Harris announced on Monday that she will be running for president in 2020 because the future of Democracy is at stake. She will campaign Friday in SC and make a late night appearance Thursday on "The Daily Show" with Trevor Noah.

Samsung Galaxy S10 with 5G just appeared, officially
Rumours suggest a Snapdragon 855 processor with a choice of 8GB or 12GB of RAM and up to a massive 1TB of on-board storage. The Korean consumer electronics giant will unveil the S10 phones on 20 February at an event in San Francisco.

Israeli bombardment on Syria kills at least 11 - war monitor
He said "the next generation of Iranian soldiers are learning the skills for the doomsday when they will destroy Israel". Monday's announcement went a step further, reporting the strikes in real time and detailing the targets.

Not so fast, Roger. Federer blocked by security
Sparkling winners sang off both racquets as the first set flew into an epic tiebreak of blown chances and courageous saves. By the time the second set reached the tiebreak the gutsy Greek had already repelled 10 break points.

Opposition stages giant joint rally to oust Modi
Samajwadi Party leader Akhilesh Yadav said BJP is anti-people and dividing the people by spreading hatred. Talking about the Opposition rally , he said, "My actions against corruption have infuriated some people.

Floyd Mayweather’s Reaction To The Pacquiao vs Broner Fight Says It All
From that point forward, though, Broner (33-4-1, 24 KOs) rarely engaged and opted to shy away from "Pac Man" until the final bell. Pacquiao (60-7-2, 39 KOs) will be returning to fight in the United States for the first time in more than two years.

Solskjaer: Lukaku is big part of Man United squad
He was quoted as saying by the BBC : " Marcus Rashford is an unbelievable talent". 'You start trusting the boys more. Now we have six forwards and we play with three most of the time .

House of Representatives Votes to Maintain Sanctions on Oleg Deripaska
The reduced role would protect the companies "from the controlling influence of a Kremlin insider", Treasury claimed. His three companies, Rusal, EN+, and ESE, had been lobbying ever since to be removed from the sanctions list.

Codey Herrmann charged with the murder of Aiia Maasarwe
He cried Friday when he saw an impromptu floral memorial arranged by members of the public at the site where her body was found . Earlier, police said they were not ruling out the possibility that Ms Maasarwe had been sexually assaulted before her killing.

DeMarcus Cousins Claims The Warriors Are The Most Hated Team in Sports
When people hear, " Boogie's back", what should they know? "You can mold them into whatever you want them to be". The Warriors don't need Cousins the way the Sacramento Kings-where he began his career-and Pelicans needed him.

China grows first ever plant on Moon
State-run China Central Television reported on Tuesday that scientists got a cotton seed to sprout for the first time on the moon. China's Chang'e 4 moon rover, known as Yutu 2, photographed by the Chang'e 4 lander on the moon's far side.