While 7% growth would be the envy of most economies, Beijing says at least this level is needed to create enough jobs for China’s huge population. The Communist Party sees social stability as an essential component in maintaining its grip on power.
China’s National Bureau of Statistics said Jan. 20 that GDP growth in 2014 was 7.4%, the lowest annual growth since 1990. It also missed the country’s target of 7.5% growth, the first time that has happened since 1999. GDP in the fourth quarter was 7.3% the agency also said.
The International Monetary Fund, Jan. 20, cut its global economic growth forecast for 2015-16 by 0.3 % to 3.5% and 3.7%, respectively. The revision came after reassessing economic prospects in China, Russia, the euro zone, and Japan as well as weaker economic activity in some major oil exporting countries, the IMF said.