The second largest economy in the world grew by just 6.7% during 2016, according to data released on Friday by government officials. The economy has been helped during the year by a strong dose of stimulus by the government.
The growth in the economy in 2016 was down 0.2% compared to the 2015 growth rate of 6.9% in China.
However, the results were in the middle of the target range set by Beijing and much stronger than a number of pessimists had predicted when 2016 started, when fears of a collapse in growth in China panicked global financial markets.
For its 2016 fourth quarter, the economy in China grew at a rate of 6.8%, slightly faster that economists had expected of 6.7%.
The government of China had to use a large amount of stimulus to keep its economy moving along during 2016. The public investment made in infrastructure soared and lending by banked surged despite repeated warnings over the worryingly high amount of corporate debt in the country.
Economists said the government’s approach could not continue for an indefinite period and they expect there will be further slowing in 2017 to just 6.5%.
The figure for the fourth quarter of 6.8% ended a run of three straight quarters with the same growth, which added to the questions over the accuracy of the official economic data released by China.
Officials in China are facing the growing burden of challenges in the economy as 2017 starts.
The moves by the government of clamping down the booming property markets across the larger cities will likely put somewhat of a dent in its overall growth.
The central bank in China at the same time is burning through its billions of billions of dollars trying to prop its yuan up, which has come under heavy pressure from large sums of money that is flowing out of the China economy.
A big question also remains over the new policies that will be implemented by U.S. president-elect Donald Trump, who will be inaugurated Friday afternoon.
He and his advisors have talked tough about China by threatening large tariffs, which raised fears there could be a trade war that would damage the exports of both countries.
This story was originally published by sleekmoney (https://sleekmoney.com) and is the sole property of sleekmoney. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at https://sleekmoney.com/china-economic-growth-for-2016-was-weakest-in-26-years/1615124.html
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.