The Chinese economy grew at its slowest pace in three years, revealing that its weakening economy is not immune from a global slowdown.
The National Bureau of Statistic released figures on Friday that showed China’s economy grew at an annual pace of 7.6% in the second quarter, down from 8.1% in the previous quarter, and the lowest level since 2009.
It is the sixth consecutive quarter of GDP decline.
Trade and manufacturing across China have been decelerating as the country braces for slower global demand from slowing economies in Europe and the United States.
In early July, the National Bureau of Statistics in Beijing reported that the China Manufacturing Purchasing Managers Index for June fell to 50.2 from 50.4 in May.
The world’s second largest economy accounts for a fifth of the world’s total economic output and is increasingly a driver of growth for other countries across the world.
Important sectors such as commodities and technology depend on China to fuel help growth, especially when forecasts are weaker in other regions.
Last spring, China established a growth target rate of 7.5% for 2012 which acts as a floor for the Chinese economy.
Beijing has adopted disciplined and measured approaches to control inflation and tame China’s once sizzling hot real estate market to prevent a real estate bubble from bursting and harming the Chinese economy.
Although Beijing has taken aggressive steps to control their growth rate and property market, the country is still vulnerable to a wider global slowdown.
China’s latest 2nd quarter GDP figures reflects this slowing growth trajectory.
To counterbalance the slowdown, Beijing has recently undertaken growth easing measures, including two interest rate cuts since June, along with China’s central bank reducing the amount of money banks must keep in reserve to help expand lending.
Economists are expecting Beijing to continue engaging in growth stimulus measures to help offset slowing demand and create stronger business activity in China.