China: slowest economic growth in 25 years

3/7/2016 12:17:00 PM

It is now official. China has reported the slowest growth of its economy in 25 years. Economic growth fell to just 6.9 percent last year. Investors are looking to Chinese policymakers to enact a stimulus plan.

NPR reports that China's gross domestic product was nearly $10.3 trillion in 2015. The Xinhua state news agency adds that for the first time, the service sector accounted for more than half of the GDP, at 50.5 percent.

Annual growth at this level would be great news in almost any other country, but in China's case, it's seen as another sign that the world's second-largest economy is struggling to cope with debt levels. Xinhua quotes National Bureau of Statistics chief Wang Baoan saying that China now "faces a daunting task in deepening reforms on all fronts."

According to experts, manufacturing and housing are struggling as the country tries to transition to a more service sector and consumer-driven economy.

On a national level, the NBS report says that per capita disposable income grew at nearly 9 percent. That represents a gain of 7.4 percent after accounting for price changes, the agency says.

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