China Recorded Lower Growth In First Quarter

Posted on April 13, 2012

China's economic growth slowed more than expected during the first quarter of this year, in which exports and domestic demand is seen to decrease the negative impact on economic growth in the second largest in the world.

China's economy recorded drop in GDP for the first quarter, which showed a decrease of 1.8% from 2.0%, while expectations for the fall by 1.9%.

At the same time every year for the first quarter also showed an unexpected decline of 8.1% from 8.9% previously, while hope it leads to a 8.4%

Furthermore, monetary policy makers will focus on stabilizing the nation's growth and avoid an excessive drop over the coming months, because they need to rely on policies that can further enhance the growth of the country.


On the other hand, the government should take steps to support the national demand by encouraging investment, in which the central bank can lower the required reserve ratio for the current month to increase investment.

Meanwhile, in China's retail sales showed an unexpected slope in March, in each year to reach 15.2% and 15.0% led to expectations. China's economy also announced the industrial production for March showed an increase to 11.6% on an annual basis from the previous year of 11.4%, while leading to lower expectations of 11.3%.

Finally, China's economy still achieve satisfactory growth but not for the world's second largest economy, which would encourage the government to increase investment and exports in order to rebound in domestic demand.