Debt drags Chinese economy on

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By Euronews
Debt drags Chinese economy on

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.

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.

Retail sales, industrial output and fixed asset investment were all better than forecast. However analysts warned so were new loans, and that a debt surge is driving much of the growth.

They added that China had become distracted from vital structural reforms by its struggle to reflate the economy.