China Hit By More Missed Growth Forecasts

Written By Unknown on Kamis, 12 Maret 2015 | 00.11

China has been hit by a series of missed growth forecasts, indicating that the world's second largest economy may be in need of additional support measures.

Retail sales, investment and factory output were all below expectation in January and February, according to official data released on Wednesday.

Sales growth was at its lowest since early 2006, industrial output since late 2008 and infrastructure investment was at a 13-year low.

The National Bureau of Statistics said despite the multi-year lows, retail sales grew at 10.7%, factory output at 6.8% and fixed asset investment at 13.9%.

China's GDP expanded at 7.4% in 2014, which was the lowest rate since 1990.

Last week the country's economic leaders lowered the 2015 forecast to around 7%, from a previous estimate of 7.5%.

There have been further signs of a contracting growth rate, with deposit and lending rates cut in late February - the second time in three months.

Consumer inflation last month clawed back from a low of more than five years.

But the inflation rise of 1.4% was partly put down to the spending splurge over the traditional Chinese lunar New Year festival.

The Hang Seng index in Hong Kong fell to its lowest level in nearly two months, on the back of the data announcement and losses on US markets.


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