China’s economy, the world’s second largest, expanded at a faster rate than economists had forecast in the fourth quarter, while the 2016 growth rate was slower than the year before.
Growth was 6.8%, up from 6.7% expansion in the previous quarter, the Chinese National Bureau of Statistics said on Friday. The pace of growth was faster than the 6.7% pace forecast by economists in a survey on investing.com.
In 2016 as a whole, gross domestic product (GDP) increased by 6.7% to 74.41 trillion yuan ($10.82 trillion), the statistics office said. The growth rate slowed from 6.9% in 2015 but came in within the government’s target range of 6.5% to 7% set in March.
Craig Botham, an emerging markets economist at London-based asset management firm Schroders, said that fourth-quarter growth was driven by investment as consumption’s contribution declined. “in the final quarter of the year, investment growth appears to have been focused in property and manufacturing, rather than state-led infrastructure,” Botham said by e-mail.