BEIJING: China's economy showed further signs of weakness in April, when the weakest growth in retail trade for 16 years highlighted that task leaders have hit domestic demand while fighting a painful trade war with the United States.  For years, governments have attempted to transfer the world's second-largest economy from being dependent on state investment and exports to a more stable one driven by China's huge consumers, with the tariffs that stand outside to strengthen the need for such a change. 19659003] Advertisement
But the latest figures on Wednesday (May 1
The figures from the National Bureau of Statistics (NBS) represent the worse rate since 2003, at the height of the SARS crisis.
The agency also said that growth in industrial production declined sharply to 5.4 per cent, while fixed capital expenditures in the four months to April increased by 6.1 per cent. Both missed the Bloomberg estimates.
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The readings speculated speculation that the authorities will uncover another round of pump priming – having wounds on such a stimulus in recent weeks following signs of a bounce in the economy – with Shanghai's composite index leaping more than one percent Wednesday.
Beijing has rolled out large tax cuts and other measures this year to boost the economy and offset the impact of a trade crisis that has seen the United States impose tariffs on hundreds of billions of dollars of Chinese goods, causing concerns for exporters.
READ: China returns with US $ 60 billion tariffs  Although leaders will prevent the economy from getting a bad hit, Julian Evans-Pritchard Capital Economics was skeptical of how much they want to do.
"With the magnitude of the stimulus likely to remain smaller than in previous downturns, we do not expect strong recovery," he says.
Betty Wang, an economist at the ANZ bank, said in a survey that real estate investments had taken over it first four months of the year thanks to "a major runner in developer financing", with bank loans, repayments and mortgages growing at a faster pace.