It was already known that China in 2012 will not report the same results as last year. But slightly better value was expected. In the first quarter, the Asian giant's GDP grew by 8,1% year on year: the lowest value in the last 3 years and the fifth consecutive quarter of slowdown. Analysts were expecting growth of at least 8,3%, considering that in the last three months of 2011 it had increased, again on an annual basis, by 8,9%. This was stated this morning by the Government of Beijing, adding that the increase was 1,8% compared to the previous quarter, better than the expectations which estimated that a +1,6% was expected.
The main cause of the contraction in Chinese GDP is the slowdown in exports, due to the decline in global demand. However, it was also weighing on the accounts the weakening of the real estate market, which has so far been one of the sectors that has most driven growth.
Beijing also released other important macro data. With regard to industrial production, in March 2012 recorded an increase of 11,9% on year, better than expected (+11,5%). Also retail sales of last month grew more than expected by 15,2%, compared to the same month last year.
For 2012 both the World Bank both the International Monetary Fund have cut their estimates on the increase in GDP and expect growth of 8,2%.
