The world’s second largest economy, China, known for its period of rapid economic expansion is rapidly slowing down. The GDP growth as dipped down to lowest since the financial crisis of 2009 as per the latest data in the first quarter. The weak manufacturing, low consumer spending and low property prices are slowing down world’s second largest economy.
The gross domestic product reached a growth rate of 6.9 percent from 7.3 percent during last quarter of the previous financial year. The official figures from the government will be released by the National Bureau of Statistics (NBS) soon. The China which even grew at a good rate during the financial crisis showed lowest growth rate since 1990 last year which was 7.7 percent in 2013. Zhou Hao, the economist based in Shanghai said that the current environment for the growth is not ideal. The economists working for ANZ further added that the reason behind it is weak progress in the manufacturing and low property rates.
The clouds of slow growth are all over the Chinese economy, with all indicators pointing out slow down. The industrial production and retail sales are all time low according the statistics released by the government. The real estate sector is suffering as well. The world’s biggest player in the goods sector has also suffered a backlash in exports and imports last month and sector is facing many difficulties. The political leadership looks very welcoming of this weaker growth prospect. They consider economy more stable and consumer driven now.