Chinese growth meets expectations

Chinese growth has met expectations, with the economy expanding almost 8 per cent for the year.

Growth in the December quarter was 7.9 per cent higher than the same period a year earlier, making for total growth in the 2012 calendar year of 7.8 per cent.

The results marginally exceeded expectations, with a Reuters poll showing economist forecasts centred on a result 0.1 of a percentage point below the actual figures.

Despite a bounce back in the last quarter, China's 2012 growth of 7.8 per cent is the weakest since 1999.

However, most economists have focused on the positive trend.

"Chinese gross domestic product turned the corner in the fourth quarter, with the contraction in economic growth seen since the first quarter of 2010 appearing to base out," wrote Patersons Securities research coordinator Andrew Quinn in a note on the data.

"The latest number sets a more positive picture in place in regard to the outlook for the Chinese economy, at the same time as the US economy is improving, and credit/bond markets in the EU are becoming more stable." China's retail sales also impressed, slightly beating expectations by being 15.2 per cent higher in December 2012 than they were in the same month in 2011.

Industrial output also met expectations, with a 10.3 per cent rise beating November's 10.1 per cent result and marginally ahead of average forecasts.

The Australian dollar initially rallied slightly before falling back a little after the Chinese data, and was trading at 105.15 US cents by 1:45pm (AEDT).

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9280-0.0085-0.90%
    AUDUSD=X
    0.5520-0.0046-0.83%
    AUDGBP=X
    0.6703-0.0081-1.19%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg