China’s economic growth down but within‘reasonable’range

%3CP%20align%3Dcenter%3E%3CIMG%20border%3D0%20src%3D%22/new_maoyi_en/cn/admin/news/NewsFile/-1/201612093855150.jpg%22%20width%3D500%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChinese%20economic%20growth%20decelerated%20to%20the%2025-year%20low%20of%206.9%20percent%20in%202015%2C%20down%20from%207.3%20percent%20in%202014%2C%20according%20to%20data%20released%20Tuesday%20by%20the%20National%20Bureau%20of%20Statistics.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20GDP%20growth%20rate%20was%20reported%20as%206.8%20percent%20in%20the%20fourth%20quarter%2C%20down%20from%206.9%20percent%20in%20the%20third%20and%207%20percent%20in%20the%20first%20two%20quarters%20last%20year.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20growth%20rate%20is%20still%20within%20a%20reasonable%20range%20as%20it%20achieved%20the%20government%27s%20annual%20growth%20target%2C%20described%20as%20%22around%207%20percent%2C%22%20said%20economists.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20service%20industry%2C%20for%20the%20first%20time%20in%20history%2C%20contributed%20more%20than%20a%20half%20of%20the%20total%20GDP%20growth%2C%20or%2050.5%20percent%2C%20suggesting%20a%20deepened%20restructuring%20of%20the%20growth%20pattern%2C%20according%20to%20the%20NBS.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMeanwhile%2C%20the%20manufacturing%20industry%20accounted%20for%2040.5%20percent%20of%20the%20GDP%20growth%20while%209%20percent%20growth%20came%20from%20the%20agricultural%20industry.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20industrial%20output%20growth%20retreated%20to%206.1%20percent%20last%20year%20from%208.3%20percent%20in%202014%2C%20hitting%20the%20lowest%20level%20since%20the%20global%20financial%20crisis.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EFixed-asset%20investment%20increased%20by%2010%20percent%2C%20a%20sharp%20decrease%20from%2015.7%20percent%20in%202014.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ERetail%20sales%20moderated%20to%2010.7%20percent%20from%2012%20percent%2C%20the%20NBS%20showed.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EDespite%20the%20growth%20slowdown%2C%20the%20increase%20in%20the%20employed%20population%20and%20per%20capital%20income%20remained%20stable.%20In%202015%2C%206.8%20million%20new%20jobs%20were%20created%20in%20the%20country.%20The%20per%20capita%20income%20reached%20by%208.9%20percent%20nominally%20to%2021%2C966%20yuan%20%28US%243%2C341%29.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EJohn%20Zhu%2C%20a%20senior%20economist%20in%20China%20at%20HSBC%20Holdings%2C%20said%20that%20sustained%20long-run%20GDP%20growth%20in%20China%2C%20which%20needs%20to%20further%20rebalance%20the%20industrial%20structure%2C%20will%20depend%20on%20supply-side%20factors%20and%20labor%20productivity.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20recent%20rise%20of%20the%20services%20sector%20to%20more%20than%20half%20of%20GDP%20has%20led%20some%20to%20celebrate%20a%20new%20kind%20of%20rebalancing%20on%20the%20output%20side%2C%22%20he%20said.%20%22A%20very%20high%20saving%20rate%20in%20the%20country%20allows%20for%20higher%20investment%20in%20raising%20the%20capital%20stock%20and%20sustains%20growth%20in%20labor%20productivity.%20Given%20China%27s%20current%20stage%20of%20development%2C%20more%20investment%20will%20be%20needed%2C%20not%20less.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20the%20first%20half%20of%20January%2C%20volatility%20escalated%20in%20both%20the%20Chinese%20equity%20and%20foreign%20exchange%20markets%2C%20due%20to%20concerns%20about%20the%20world%27s%20second%20largest%20economy%27s%20ability%20to%20successfully%20rebalance%20its%20economy.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChang%20Jian%2C%20chief%20economist%20in%20China%20at%20Barkley%27s%20Capital%2C%20expected%20more%20easing%20measures%20on%20both%20the%20monetary%20and%20fiscal%20fronts%2C%20given%20the%20weakening%20outlook.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22On%20monetary%20policy%2C%20we%20look%20for%20two%20benchmark%20rate%20cuts%20by%2025%20basis%20points%20each%20and%20two%20cuts%20of%20reserved%20requirement%20ratio%20in%20the%20first%20half%20to%20support%20liquidity%20and%20lending.%20We%20expect%20more%20targeted%20fiscal%20stimulus%20announcements%20to%20support%20consumption%20and%20infrastructure%20investment%2C%20as%20well%20as%20more%20reductions%20in%20corporate%20taxes%20and%20fees%2C%22%20Chang%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China.org.cn%29%3CBR%3E%3C/FONT%3E%3C/P%3E