This content is not available in your region

Debt drags Chinese economy on

Access to the comments Comments
By Euronews
Debt drags Chinese economy on

<p>Latest figures from China’s National Bureau of Statistics are causing some economists to wonder if the worst is over in the contraction in the economy.</p> <p>Q1 figures for 2016 indicate annual growth at 6.7 percent, its slowest since 2009, but a recovery is visible in factory activity, investment and household spending.</p> <p>Retail sales, industrial output and fixed asset investment were all better than forecast. However analysts warned so were new loans, and that a <a href="http://www.reuters.com/article/us-china-economy-gdp-idUSKCN0XB2XX">debt surge</a> is driving much of the growth.</p> <p>They added that China had become distracted from vital structural reforms by its struggle to reflate the economy.</p>