China’s First-Quarter Growth Slowest in Six Years at 7%

15-Apr (Wall Street Journal) — China’s economy started the year on a downbeat note with its slowest quarterly growth rate since 2009, pointing to a further loss of momentum for the world’s second-largest economy.

The 7% first-quarter year-over-year growth rate marks a slowdown from 7.3% in the fourth quarter. It puts more pressure on economic planners to ease fiscal and monetary policy even as they try to avoid excessive stimulus that could boost debt and fuel more overcapacity in real estate and heavy industry.

The growth figure — the second-lowest since 2001 – affords Beijing little cushion in hitting its 7% annual growth target. Other figures released on Wednesday suggest further weakness in the economy, which economists say could prompt Beijing to act further. “They still have plenty of ammunition left,” said IHS Global Insight economist Brian Jackson.

[source]