China Economic Growth Slowest Since 1990

China's economy expanded by 6.6% in 2018 - the slowest rate in nearly three decades as the trade war with the US takes effect

J.P. Morgan Asset Management 21 January, 2019 | 9:46AM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, J.P. Morgan’s Chaoping Zhu comments on China’s concerning GDP and demographic data.

Today’s China GDP growth rate of 6.6% reflected a weakening in momentum, although some data suggests marginal improvements in industrial production and investment. Besides data for economic activities, investors should note the record lows in population growth and the birth rate, which will put pressure on the long-term economic potential of China.

Real GDP Growth Declines

For full year 2018, GDP growth reached 6.6% year on year, slightly above the target of 6.5% set at the beginning of the year. However, the gradual decline in GDP growth over the four quarters suggests growth remains under pressure. Among the three major sectors, improvement could be seen in the secondary industry, which reported a higher growth of 6.4% year on year in the fourth quarter of 2018 than that of 5.3% year on year in the third quarter.

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J.P. Morgan Asset Management  is the investment arm of JPMorgan Chase & Co. and it is one of the largest active asset managers in the world.