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China's latest miss adds to global fears

Monday, April 18, 2016 - 01:24

China's economy expanded a seasonally-adjusted 1.1 percent in the first quarter of 2016 from the fourth quarter of last year, National Bureau of Statistics data show. As Sonia Legg reports, it's the lowest quarterly expansion on record since 2010.

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It was never going to be easy going from this to.... this quickly and clearly China is finding the adjustment hard. Its economy was just 1.1 percent bigger in the first quarter than it was In the previous one - taking into account seasonal adjustments. That was the lowest recorded quarterly rate since 2010. And below the 1.5 percent expected by analysts. (SOUNDBITE) (English) CEBR, CHIEF ECONOMIC ADVISER, VICKY PRYCE, SAYING: "There is still huge structural problems that need to be addressed - over capacity, over production loads of very inefficient subsidised enterprises. There needs to be a massive shake out - the banking sector still needs to be looked at, there's big debt in the economy - those things need to be sorted out." The government is responding - and annual growth above six per cent is still being forecast. But combine China with other issues and the rest of the world has a problem. (SOUNDBITE) (English) CEBR, ChIEF ECONOMIC ADVISER, VICKY PRYCE, SAYING: "Because of everything else going on, low commodity prices, geo-political tensions - still issues about sanctions. What we are seeing is that world trade is not going at anything like as fast as would otherwise be the case at this moment of a recovery - that is bad news for the world economy as a whole as trade has always tended to lead a recovery." The other problem of course is the reliability of the figures. Some China watchers suspect real growth levels are much lower than the official data suggests

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China's latest miss adds to global fears

Monday, April 18, 2016 - 01:24