New economic data released on Monday from China’s National Bureau of Statistics revealed that the Chinese economy grew less robustly than estimated in the first quarter of 2013, raising fresh concerns that the second largest economy in the world is not growing as fast as expected despite a new infusion of cash from China’s banks.
Last week new data released from Beijing signaled that Chinese banks made 1.06 trillion Chinese yuan ($171 billion) in new loans in March which was notably higher than 620 billon Chinese yuan in February and meant to create more economic momentum to rejuvenate the economy.
A strong cash infusion into the Chinese economy was expected to boost the overall Chinese economy and prevent a decline in the first quarter GDP.
However, the first quarter 2013 GDP figures for China showed on Monday that the Chinese economy grew 7.7 percent compared with a year ago, weaker than 7.9 percent in the fourth quarter of 2012 and modestly lower than the 8 percent from consensus reports.
Industrial output growth was 8.9 percent year over year and noticeably lower than 9.9 percent in February.
Asian and European markets are currently trading lower on the disappointing economic news.
Beijing has established a 7.5 percent GDP growth target for China in 2013.
Chinese government officials blamed much of the economic decline on the weakness in the global slowdown along with domestic controls in the real estate market which are aimed at preventing a property bubble.
China’s largest trading partner, the EU, remains mired in recession.
Investors are digesting the disappointing news out of China on Monday and trying to put it into perspective after last week saw U.S. equity markets rallying over 2 percent despite closing the week on Friday slightly lower following news about U.S. retail sales dropping 0.4% in March along with mixed bank earnings.