The Chinese economy grew at an annual pace of 7.7% in the fourth quarter of 2013, which was enough to ensure that growth for the whole of the year matched that of 2012.
According to preliminary data from the National Bureau of Statistics (NBS) of China, the economy grew by 7.7% for a second consecutive year in 2013, which was above the government’s growth target of 7.5%.
The 7.7% annual growth rate in the December quarter was slightly down from the 7.8% in the three months to the end of September.
China’s economy is the second biggest in the world and as Australia’s largest trading partner, its progress has a significant bearing on the Australian economy and share market.
Impact on Australia
Many Australian industries, including resources, energy, agriculture and tourism rely heavily on demand from China for their goods and services.
The Chinese growth figures, which were slightly ahead of market forecasts, gave the Australian share market a lift this afternoon, as the benchmark ASX 200 index rose by around 0.4% in the two hours after the data was released, reversing declines from this morning.
Industrial production increased by 10% in the fourth quarter of 2013, contributing to annual growth of 9.7%, with manufacturing up by 10.5% and the output of cars rising by 16.6%.
Retail sales of consumer goods rose 11.5% in 2013 on real terms, which takes into account inflation and other factors. Cars, furniture, household equipment and electronics drove the growth in sales.
