China has officially confirmed that its growth rate in 2015 was 6.9%, the lowest growth the country has registered during the last twenty five years.
The official data about the economy’ performance came at a time when financial markets and policy makers fearing a backlash from the slowing Chinese economy. Data was revealed by National Bureau of Statistics- China’s national income accounting entity.
Chinese official media- the global times has described the growth rate as ‘within the people’s expectations’. Premeier Li Kequiang has mentioned the increasing downward pressure on the economy that is complicated by poor global demand.
The declining growth is not good for China or the rest of the world. World Bank has already cautioned that slowing China is a growth depressant for large number of countries who depend upon commodities export to China.
Economists predict some type of a proactive intervention by the Chinese leadership to bring up the economy. One of these stimulation measures is devaluation of Yuan. If it is adopted, China may face retaliation from its emerging market peers and thus driving the world economy into further turbulence.
Though the Chinese describe the sub seven growths as the ‘new normal’, side effects of falling growth rate is viewed with alarm. At the same some experts also doubts the accuracy of Chinese data and according to them the growth rate would be much lower.