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While the figure is in line with a median forecast of 10 economists surveyed by AFP, it follows a series of weak numbers pointing to trouble in the Asian giant, with analysts saying it could miss Beijing’s 2013 target.
Growth in the first six months of the year came in at 7,6 percent, the National Bureau of Statistics said, adding performance in that period was “generally stable” and within expectations.
“However, we are still faced with grim and complicated economic situations,” the NBS said in a statement. The first three months of the year saw the economy expand 7,7 percent, a decrease from the 7,9 percent recorded in the last quarter of 2012.
This year’s figures have so far proved disappointing after the 7,8 percent seen in 2012, itself the worst in 13 years.
“As of now, China’s GDP has been staying under 8 percent for five straight quarters, a clear sign of distress,” economist Ren Xianfang of IHS Global Insight said.
“The rather sharp growth deceleration and the recent financial market turmoil indicate that risks have been building on both the financial and real goods sector,” she added.
Comments last week by China’s finance minister raised questions about whether its 2013 target of 7,5 percent can be achieved.
“Our expected GDP growth rate this year is seven percent,” Lou Jiwei told reporters on the sidelines of an annual strategic and economic dialogue between China and the United States in Washington.
China’s leaders have proclaimed a long-term goal of rebalancing the economy, and since coming to power as Communist Party chief in November and then state president in March, Xi Jinping has placed less emphasis on the traditional growth drivers of exports and investment, and more on consumer spending.
NBS spokesman Sheng Laiyuan blamed the latest slowdown on China’s “declining potential productivity”, which he said meant the same investment could no longer generate the same returns as in the past.
Speaking to reporters, he also cited “the international environment that remained complicated and severe”, an apparent reference to weak economic conditions abroad, including recession-hit Europe, still struggling with a debt crisis.
The slower rate was also a result of measures taken by the new leadership, which “attaches particular importance on restructuring and retooling the economy”, he added. — AFP.
Online Reporter