China's economy grew at slowest pace in 28 years in 2018


"Growth will remain under pressure in the coming months", Louis Kuijs of Oxford Economics said in a report.

China's economy slowed dramatically during 2018, dropping to its lowest point in almost 30 years as the communist country continues battling a prolonged tariff fight against President Donald Trump.

In the three months to December, the economy grew 6.4% from a year earlier, down from 6.5 percent in the previous quarter. "It was a awful year, and it doesn't look like things are getting any better this year", Lu told reporters.

Growth in property investment in China cooled to the second slowest pace in 2018 in December, adding to signs of a further slackening in the real estate market in a blow to a key driver economic growth.

China's population grew at a slower rate past year despite the abolition of the one-child policy, official data showed on Monday (Jan 20), raising fears an ageing society will pile further pressure on an already slowing economy.

"The trade war is now making itself felt above all in growing uncertainty", said China expert Max Zenglein from the Mercator Institute.

Still, China's total population rose by 5.3 million in 2018 to 1.395 billion people, retaining its title as the world's most populous nation.

"Still, with the headwinds from cooling global growth and the lagged impact of slower credit growth set to intensify".

Indian economy poised to pick up in 2019, says International Monetary Fund
The IMF said while the Chinese growth rate has been on a downward slope India has experienced an upward trajectory in these years. The IMF's growth outlook for the 19 countries that use the euro currency has been reduced to 1.6 per cent from 1.8 per cent.

The official figures out Monday showed the weakest quarterly growth rate since the global financial crisis.

The new data lowering the figures was released on Friday after final verification pointing to the continued slowdown of China's economy.

Sources have told Reuters that Beijing was planning to lower its growth target to 6-6.5 percent this year from around6.5 percent in 2018.

China and the United States have been engaged in a trade war since US President Donald Trump announced in June that $50 billion worth of Chinese goods would be subject to 25 percent tariffs in a bid to fix the US-Chinese trade deficit.

Signs of China's falling population growth had emerged when data released by some local authorities indicated a significant drop in births previous year.

Monday's data also showed consumption played an increasingly bigger role in the economy, contributing 76.2 percent of GDP growth, up significantly by 18.6 percentage points from a year ago.

Imports are also likely to continue growing in the face of the latest domestic production numbers: in 2018, production from local fields fell for the third straight year due to natural depletion, higher costs, and the absence of new discoveries. Industrial output grew 5.7 percent in December from a year earlier, beating expectations of 5.3 percent.

For the full year, property investment increased 9.5 percent from the year-earlier period, down from 9.7 percent in January-November.