China's economy grew 6.9% in 2015, a 25-year low

China's economy grew 6.9% in 2015, a 25-year low

China's economic growth rate slowed to a 25-year low of 6.9 per cent in 2015, reigniting worries about the health of the world's second-largest economy.

China's economy grew 6.8 per cent in the fourth quarter of 2015 from the same period last year, official data showed Tuesday.

Economic growth for the quarter was expected to come in at 6.8 per cent on-year, down from the third quarter's 6.9 per cent, according to a Reuters poll, which also found economists expected full-year growth at 6.9 per cent, down from 2014's 7.3 per cent.

At the opening ceremony for the Asian Infrastructure Investment Bank on Saturday, Chinese Premier Li Keqiang said that China's economy grew about 7 per cent in 2015, with services accounting for half of GDP.

To counter slowing growth, policy makers have taken a slew of easing measures, including interest rate and reserve requirement ratio cuts from the central bank, the People's Bank of China. Analysts are predicting further easing measures ahead to bolster the mainland's slipping growth rate.

There are a slew of concerns about the Chinese economy as it transitions from a manufacturing base to services: The country is hooked on debt, the shadow banking sector has imploded, the property market sometimes shows signs of a bubble and major industries are slowing.

Those concerns have driven, at least in part, a sharp drop in China's stock markets recently. The Shanghai Composite has entered "bear within a bear" territory, falling more than 20 per cent from its December high, as well as trading down more than 40 per cent from its 52-week high set in June of last year.

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