China’s GDP expanded 6%in Q4 2019, according to the country’s official numbers.
In the entire year of 2019, the country’s economy grew 6.1%, meeting the lower end of its target but slower than the 6.6% in 2019.
Industrial output rose 6.9% in December from the same period the previous year, versus the median forecast of 5.9%.
However, the surveyed unemployment rate grew to 5.2% in December from 5.1%.
Around 58% of China’s growth in 2019 was due to consumption, with investment adding 31% and the remaining 11% from net exports, said Statistics Bureau head Ning Jizhe earlier today.
While consumption is the major driver of economic growth, its contribution of consumption was lower than in 2018.
One likely factor for that is the weak income growth. Per capita incomes grew 5.8% in 2019, below the 6% real growth of the economy.
Ning said that the slower growth in real incomes was partly due to higher inflation.
China’s economy is expected to stabilise in 2020 as the first-phase trade deal was signed with the US recently.
However, uncertainties remain as the US won’t roll back tariffs already imposed on Chinese goods before the completion of presidential election to be held later this year.
Policy makers in China have signalled they are prioritising economic stability in 2020, with stimulus to be kept largely unchanged.