Chinese economy ‘in weak recovery’

<p>Economic growth in China is slower than expected.</p>

The release of official data has shown economic growth in China is slower than predicted.

Annual growth was revealed to have been 7.7 per cent in the first quarter of the year, down from the 7.9 per cent recorded between October and December.

Wei Yao of Societe Generale stated the figures show the economy in China is in a "weak" recovery at the present time, reports BBC News.

"The Chinese economy is showing soft growth momentum in the first quarter," he said.

Analysts had expected levels of growth to be around the eight per cent mark, so the announcement it only reached 7.7 per cent was a surprise to many.

While industrial output rose 8.9 per cent in March from a year earlier, this was down from the ten per cent that was predicted beforehand.

Earlier in the month, China revealed that it has entered into a currency pact with Australia, which came just a short time after it was revealed that a similar deal has been confirmed between China and Brazil.

Learn about the sterling and forex trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.