China’s industrial output growth slows to nine-year low

China’s industrial output growth slows to nine-year low
Published: 15 December 2008

China’s industrial output in November  grew  by  5.4  per cent YoY, the lowest monthly growth rate recorded by the country since 1999,  according to the National Bureau of Statistics.

The November  growth  rate  represents  a 2.8 percentage point drop from that of  October,  and  an  11.9  percentage  point tumble from the rate recorded in November 2007, though the country’s industrial output in the 11 months between January and November still expanded by 13.7 percent on an annual basis.

China’s  industrial  output  figures are calculated with output from all state-owned  and  privately-owned  enterprises  operating in the country with annual revenues larger than RMB 5 million ($729,927.01).

In terms  of  output, the steel product, automobile and power generation sectors all posted substantial year-on-year drops over the month. China’s  export-driven  market  is facing pressure from economic turmoil overseas,  as demonstrated by key data released this month that showed a faster-than-expected economic slowdown. Experts told Interfax that China may see  its gross domestic product (GDP) growth in 2009 fall to below 8 percent on an annual basis.

In response to the slowing economy, the State Council decided on Dec. 13 to raise  the  country’s  money  supply by 17 percent in 2009. The State Council  said  it  would  further  improve currency supply by suspending three-year  bank  notes, halting the issuance of shorter-term bank notes and encouraging  commercial  banks  to  increase  lending for centrally-invested projects, state-run Xinhua news agency reported on Nov. 14.