China's economy slumps to 6.1%

Beijing: China's GDP grew by 6.1 per cent last year, the lowest in 29 years, the government said on Friday, as sluggish domestic demand and the bruising 18-month trade war with the US seriously impacted the world's second-largest economy.

The new GDP data released by the National Bureau of Statistics (NBS) comes a day after China and the US signed a long-awaited phase one deal, marking a ceasefire in the 18-month trade war which saw the world's two largest economies slap 25 per cent tariffs on about half a trillion-dollar worth of each other's exports.

China's economy grew by 6.1 per cent last year, its worst performance since 1990, but it remained above the psychologically important six per cent mark. The GDP growth remained well within the 6 to 6.5 target set by the government, the NBS said.

However, significant from the Chinese government's perspective, the GDP expanded to $14.38 trillion from last year's $13.1 trillion. In 2018, China's economy sank to a 28-year low slowing down to 6.6 per cent year on year, lower than the 6.8-per cent growth registered in 2017 as it grappled with the continued slowdown amid the trade war with US and declining exports.

Facing growing risks and challenges at home and abroad, the overall performance of the national economy has been stable, the quality of development has been improving with major targets being met, laying a solid foundation for completing the building of a moderately prosperous society in all respects, Ning Jizhe, Director of the NBS said at a press conference.

There is a sense of relief among the officials here as the official growth rate remained above the psychologically important 6 per cent as mandated by Chinese President Xi Jinping who in the past directed that GDP should not go down below six per cent, which could cause serious disruption to the world's second largest economy.