China’s longest streak of expansion below 8 percent in at least 20 years is sending a message to suppliers and investors around the world to get used to slower growth in the second-biggest economy.
The 7.7 percent increase in first-quarter gross domestic product from a year earlier marked the first time in data going back two decades that four periods in a row have seen growth of less than 8 percent. The figure released Monday by the National Bureau of Statistics in Beijing was also the worst miss of analyst estimates since the third quarter of 2008, according to data compiled by Bloomberg.
Australian Treasurer Wayne Swan said last week that he supports the Federal Reserve’s quantitative easing and Japan’s reflation policy, in contrast to Europe’s “too-harsh” pursuit of austerity as the world economy struggles to shake off the global financial crisis. Graham Kerr, chief financial officer of Melbourne-based BHP Billiton, said April 10 that China’s expansion will approach 6 percent after two years.