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)

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.