China’s economy posted slowest annual growth in 25 years

As Chinese economy decelerates,
its GDP expands by just 6.9 percent

LAHORE: Just when the International Monetary Fund (IMF) was whispering that the economic slowdown in China and rock-bottom oil prices would continue to hit the global growth for 2015 to make it rest at just 3.1 percent, down from 4.2 percent in 2011, the National Bureau of Statistics in Beijing has announced that the country's Gross Domestic Product (GDP) has expanded by just 6.9 percent during the preceding year -- against the seven percent target set by the government, writes Sabir Shah.

Interestingly, during July 2015, the IMF had said that the global growth was projected at 3.3 percent in 2015, marginally lower than in 2014, with a gradual pickup in advanced economies and a slowdown in emerging market and developing economies. 

IMF had further predicted in July 2015 that growth was expected to strengthen to 3.8 percent in 2016. Now in January 2016, IMF has projected the global growth at 3.4 percent in 2016 and 3.6 percent in 2017. In China's case, IMF had earlier projected a 6.8 per cent growth during 2015.

The CNN has reported: "For the fourth quarter of 2015, the economy grew 6.8 percent compared with the same period a year earlier. That's a touch below economists' estimate of 6.9 per cent and the slowest rate since the dark days of the financial crisis in 2009. After years of torrid expansion, the world's second-largest economy is now decelerating. The government is trying to shift the growth engine away from manufacturing and debt-fueled investment toward the services sector and consumer spending."

The leading US media house has added: "Uncertainty over the outlook for the Chinese economy, a key driver of global growth, has roiled international markets lately. China isn't buying as many commodities as it once did, and the world is awash with oil -- hurting exporters. The country's currency, the Yuan, has fallen against the dollar. But the growth data released Tuesday didn't appear to trouble investors. The Shanghai Composite was broadly flat in morning trade and later rallied to close up 3.2 per cent. The Hang Seng in Hong Kong gained 2.1 percent."

According to a "CNNMoney" survey, economists are forecasting growth of 6.5 percent for 2016. The "CNNMoney" has maintained: "That's the rate top Chinese officials say is needed to reach the government's goal of doubling the economy from 2010 levels to $12 trillion by 2020." 

In November 2015, the IMF had assessed varying GDP growth rates for numerous advanced economies of the world.  With IMF-projected growth rates in brackets, here follows a brief list of expected growth patterns in some large/developed economies:

Canada (2.4 percent), France (one percent), Germany (1.5 percent), India (6.4 percent), Italy (0.9 percent), Japan (0.8 percent), Mexico (3.5 percent), Russia (0.5 percent), Spain (1.7 percent), United Kingdom (2.7 percent) and United States (3.1 percent).

Research conducted by the "Jang Group and Geo television Network" reveals that the world's combined Nominal GDP today rests at $77.609 trillion and the GDP per capita stands at $10,857.

The global GDP at Purchasing Power Parity (PPP) stands at $106.998 trillion. Of more than seven billion humans breathing on the planet, some 1,594 are billionaires and there are 3.25 billion people languishing below the $2 per day mark.

Some 5.4 percent humans residing on Earth are unemployed. As of 2015, the following 13 countries or regions have reached an economy of at least $2 trillion by GDP in nominal or PPP terms: Brazil, United Kingdom, Germany, United States, Russia, Mexico, China, France, Japan, India, Indonesia, Italy and the European Union. At exchange rates, the economic output of the world is expected to expand by $31.5 trillion from 2010 to 2020.