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China's economy slows to 29-year low in 2019

China economy slows to 29 year low in 2019

China's economic growth slowed to its lowest level in nearly three decades in 2019, in line with analysts' expectations, as the US-China trade war weighed on economic growth.

Data released by China's National Bureau of Statistics (NBS) on Friday revealed that the GDP grew by 6.1 percent in 2019, up from 6.6 percent the year before.

The 2019 reading on China's economy was the slowest in nearly 29 years, but still within the government's target range of 6 to 6.5 percent.

The slowdown in the economy was a response to sluggish demand at home and abroad, as well as the escalation of trade tensions with the United States over the past 18 months.

Given the quarterly performance, China's economy grew by 6 percent in the quarter ended December on annual basis, matching analysts' expectations, similar to the reading recorded in the last quarter of 2018.

Industrial production in China grew by 6.9 percent in December year-on-year, compared with 6.2 percent the previous month and forecasts of 5.9 percent.

Other data showed that China's retail sales grew by about 8 percent last month, compared to the same period in 2018 and 7.9 percent estimated by analysts.

China's Central Bank is set to count on the higher infrastructure spending to prevent a more slowdown, where the key targets are scheduled to be announced in March.

Meanwhile, the USDCNH pair traded at 6.8851 after hitting a high of 6.8852, while the lowest level recorded was at 6.8826.

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