Chinese Growth Plunges

From Bloomberg:

Jan. 22 — China’s economy expanded at the slowest pace in seven years as the global recession dragged down exports, increasing pressure for more government spending and lower interest rates to buoy growth.

Gross domestic product grew 6.8 percent in the fourth quarter from a year earlier, after a 9 percent gain in the previous three months, the statistics bureau said in Beijing today. The figure matched the median estimate of 12 economists surveyed by Bloomberg News.

This figure updates that presented in this post from four months ago.chinaq4growth.gifFigure 1: 4 quarter growth rate in real Chinese GDP, latest vintage (blue) and August 2006 vintage (red). Source: CEIC (older vintage), ADB, and press accounts (newest vintage).Note that the actual outcome for Q4 was far below the 11/7 forecast from Deutschebank. This illustrates how far growth prospects in China have deteriorated in just a short two and half months.

Originally published at Econbrowser and reproduced here with the author’s permission.