Concerns grow over Chinese economy

A Chinese stock investor reacts near a display for stock prices at a brokerage house in Qingdao in eastern China's Shandong province Tuesday, Aug. 25, 2015 (Chinatopix via AP)

China's economic growth in the fourth quarter slowed to the weakest since the financial crisis.

There have been growing concerns about the Chinese economy, following a renewed plunge in its stock markets and yuan currency.

After being a major driver of global growth in recent years, China is locked in the midst of a protracted slowdown.

Weak exports, factory overcapacity, slowing investment, a soft property market and high debt levels are all compounding problems for the Government as it tries to transition from a centrally planned economy to a more market-oriented model.

Growth in fourth-quarter gross domestic product (GDP) eased as expected to 6.8 per cent from a year earlier, down from 6.9 per cent in the third quarter and the weakest pace of expansion since the first quarter of 2009.

Full-year growth of 6.9 per cent, enviable by Western standards, was China’s poorest showing in quarter of a century.

Other data suggested the world’s second-largest economy lost more steam in December, dashing hopes that a year-long flurry of Government stimulus would finally kick in.