- Tim Condon, head of Asia research at ING Groep NV
The world's second biggest economy continued to grow at the slowest pace in almost six years in the fourth quarter of 2014, with the annual rate of expansion coming in at the weakest level in 24 years. China's economic output rose by 7.3% in the December quarter, unchanged from the previous three months, translating into an annual growth of 7.4% for 2014, down from 7.7% in the preceding year. This was still better than economists' forecasts, who had predicted a 7.2% annual growth, but marked the end of a high-growth heyday that spurred global demand. The slower growth in China has been reflected around the world, pushing commodity prices significantly lower and weakening already fragile global economy.
A separate report also showed industrial production and retail sales for December beat the median estimates, adding to signs China's stimulus efforts started to kick in late last year. Industrial output rose 7.9%, while retail sales jumped 11.9%. China's officials are expected to widen measures that so far have included an acceleration in investment approvals and the first interest-rate cut in two years. Ensuring a soft landing for the Chinese' economy would help a global economy combating weakness that forced the International Monetary Fund's steepest revision to its world growth outlook in three years.
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