China’s Economy Faces Slowing Sharper Rate

China’s economy is slowing at a sharper rate than previously expected, according to a series of data out last Tuesday.

Experts pointed out that figures for industrial production, retail sales and investment in the first two months of the year were all short of market expectations.

It is speculated that Beijing may have to use stimulus means to achieve economic growth targets. Although they had been reduced to the lowest point in over two decades.

According to the National Bureau of Statistics, industrial output in January and February was up only 6.8% from a year earlier, the slowest since the trough of the 2009 downturn.

It is below the 7.8% rate that predicted by Chinese economists. Meanwhile, the rate of growth in investment of fixed assets fell to 13.9% from 15.7% in December.

However government officials have been generally sanguine about signs of slowing industrial growth.

They insist it is consistent with long-term strategy of re-orienting the economy more to domestic consumption and services.

On the other hand, due to Beijing’s increasing focus on employment levels experts note that China’s urban labor force will reach 15 million this year, and they think it may be able to play a significant role in mitigation.