Chinese economic growth slowed to 7 percent in first quarter

In the first quarter of the year the Chinese economy grew at its slowest pace in six years.

The National Bureau of Statistics (NBS) announced on Wednesday that economic growth in China slowed to 7 percent in the Q1, down from 7.3 percent in the previous quarter.

The figures reveal that the world’s second-largest economy is losing momentum.

However, the country expanded by more than what multiple institutions has forecast in the first-quarter – of below 7 percent growth.

In addition, the country did manage to meet the annual growth target set by the Chinese government of around 7 percent.

According to Xinhua, NBS spokesperson Sheng Laiyun said at a press conference held in Beijing:

“The Chinese economy is generally holding steady in the first quarter because employment, consumer prices and market expectations are basically stable, despite a slowdown in economic growth,”

NBS data revealed that industrial output in general grew 6.4 percent year-on-year, down from the 8.7-percent growth last year.

Investment in the real estate sector only increased by an annual 8.5 percent in the first quarter, the lowest rate since 2009.

The Chinese economy is still adjusting

Sheng Laiyun told reporters that “the risk of the Chinese economy having a ‘double dip’ or a ‘hard landing’ is very small,” adding that the country would meet its 2015 GDP growth target.

He said that although industrial output and investment has slowed the country has made progress with structural reforms that have created a better industrial layout and an increase in people’s income.

The Chinese economy is still adjusting from relying on exports to being one driven by domestic consumption. Trade growth across the world is still much lower than it was before the global financial crash in 2008 and the country is trying to spur domestic spending.