China's economic growth rate of 7.8 pc in 2012 lowest in 13 years

Last Updated: Fri, Jan 18, 2013 10:01 hrs

China's economy, the world's second largest, has grown at its slowest pace in 13 years as domestic and global demand weakened.

Gross domestic product, the main measure of growth, increased by 7.8 percent in 2012, down from 9.3 percent in 2011, reports the BBC.

However, government measures to boost growth are starting to work, and there was a pick up in the last quarter.

Analysts said the rebound in the economy during the last three months of 2012, when growth picked up to 7.9 percent from 7.4 percent in the previous three months, will help ease some concerns.

However, they warned that China would still be vulnerable to the impact of external shocks in the US and Europe.

Rajiv Biswas, from IHS Global insight, said the days of China's blisteringly fast growth look to be over as it moves from a low-income country to a middle-income one.

He said China grew at about 10 percent on average for 30 years, but the Chinese economy is now in transition. Biswas expects growth to average between 7 percent and 8 percent over the next few years, which is in line with government expectations.

Slower growth in the US and Europe have seen demand soften for Chinese products. At the same time, China has struggled to stoke its domestic demand. (ANI)

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