Chinese economy on the slide

The Chinese economy is slowing faster than expected, according to recent data. Are the authorities losing control?

The February data from China show that the economy is slowing faster than expected. Averaging January and February figures (to adjust for distortions caused by the timing of the New Year festival) shows that exports grew by just 6.9% year-on-year in the first two months down from 14.3% in the fourth quarter and the slowest pace since the global crisis in 2009. Unexpectedly weak exports and strong imports in February caused the largest monthly trade deficit on record.

Inflation in the first two months fell to 3.9%, below the government's 4% target, while industrial output growth was the lowest since mid-2009. Retail sales growth fell to an annual 14.7% and loan growth figures were the poorest since 2005. The government has now eased lending standards further in order to bolster the economy.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.