Chinese Quarterly Growth Slowest Since 2009

The annualised pace of GDP growth fell to 6.7% but there were signs of improvement in consumer spending, factories and investment.

Containers at a port in Jiangsu province, China

China's economy grew at its weakest pace in seven years in the first quarter, official figures showed, but there were signs that its slowdown was bottoming out.

Gross domestic product (GDP) expanded at an annual pace of 6.7% in the January-March period, slowing from a rate of 6.8% in the last three months of last year.

It represented the weakest pace of growth since the first quarter of 2009 – the height of the global financial crisis – for the world's second biggest economy, whose stuttering performance has prompted a turbulent period for global markets in recent months.

China's economy had grown by 6.9% in 2015 as a whole, its slowest pace for a quarter of a century.

The latest figure was in line with expectations. The data also showed better-than-expected growth in retail sales, industrial output and fixed asset investment - possible signs of a tentative recovery. New lending by Chinese banks was also larger than forecast.

The National Bureau of Statistics said that while economic indicators showed positive changes, "downward pressure cannot be underestimated".

Asian stock markets had a subdued session in the wake of the data – partly due to caution ahead of a weekend meeting of oil producers and the implications it might have for the price of crude.

The latest Chinese economic figures come after March export data showed an unexpected recovery, though some experts cautioned that seasonal effects from the lunar new year holiday could be a factor.

Analysts have warned that the current steadying of performance is mainly due to the government's efforts to shore up the economy rather than any improvement to firms' efficiency or market reforms.

Economic Intelligence Unit economist Tom Rafferty said: "Today's release data ought not to distract from the fact that the structural issues facing China's economy remain unresolved.

"It has taken considerable monetary and fiscal policy loosening to stabilise economic growth at this level and this effort has distracted from the reform agenda that is fundamental to long-term economic stability."