China’s economic growth slowed during the first three months of 2016.
Chinese state media reported Friday that the nation’s gross domestic product (GDP) grew at 6.7 percent between January and March.
GDP represents the value of all goods and services produced within a country.
China is the world’s second-largest economy. The 6.7 growth rate was the slowest there since the start of the world financial crisis seven years ago.
In the final three months of 2015, the Chinese economy grew 6.8 percent.
The National Bureau of Statistics said the economy is still within range of the central government’s expectations. The official full-year target for economic growth is 6.5 to seven percent.
China’s GDP has averaged nearly 10 percent a year since 1978, according to the World Bank.
The economy has slowed over the past five years. The government has reacted by cutting interest rates and increasing spending on public works projects. The government is also trying to get the public to buy more Chinese-made goods and services.
Economists told the Associated Press a construction slump and weak exports are reasons for the slower growth economy.
Economic forecasters expect China’s economy to grow at a slower- than-normal rate this year, according to the Associated Press. The news agency said an expansion of just 6.3 percent is expected in 2016.
I’m Jim Dresbach.
Words in This Story
forecaster – n. a person who says that something will happen in the future
gross domestic product – n. the total value of the goods and services produced by the people of a nation during a year, not including the value of earnings in foreign countries
range – n. a series of numbers that include the highest and lowest possible amounts
construction – n. the act or process of building something such as a house or road
slump – n. a period of time when an economy is doing poorly