The world’s second-largest economy grew by 6.1% in 2019, its slowest expansion in 29 years, Chinese growth figures showed on Friday.
China’s economic growth cooled to its weakest in nearly 30 years in 2019 amid a bruising trade war with the United States. More stimulus is expected this year as Beijing tries to boost sluggish investment and demand. But data on Friday also showed the world’s second-largest economy ended the rough year.
Chinese growth figures suggested the world’s second-biggest economy was stabilizing. China’s economy grew 6% between October and December last year. Weak domestic demand and the trade war with the United States led to growth of 6.1% in 2019, the slowest in 29 years. But the data reinforced recent signs of an improvement in Chinese business confidence.
More recent data, along with optimism over a Phase 1 U.S.-China trade deal signed, have raised hopes that the economy may be bottoming out.
Analysts expect that deep political rifts between Beijing and Washington are set to persist, despite the trade relations breakthrough. On top of that market enthusiasm was checked, because much of the agreement was priced in.
START TRADINGForex – Chinese growth falls to 29-year low
Optimism over the Phase 1 U.S.-China trade deal signed has also raised hopes that the economy may be bottoming out.
The dollar held its ground against a broad basket of currencies but was on track for a small weekly loss. The dollar index tracking its strength against six of its major peers little changed at 97.31. Recent data has been mildly supportive of the greenback.
The Australian dollar rallied as Chinese data showed pressure on the world’s second-biggest economy may be starting to diminish. The Aussie is often traded as a liquid proxy for the Chinese yuan as the country’s small, open economy is heavily reliant on exports to China.
The Aussie rose 0.2% against the dollar.
Sterling steadied below $1.31 on Friday and was on track for its first weekly gain in a month. The pound gave up early gains on Friday after UK retail sales data came in weaker than expected. Sterling rose to a six-day high before investors resumed selling the currency, in a week dominated by dismal data and dovish comments from policymakers.
The pound was last down 0.3% at $1.3033 and fell 0.1% against the euro at 85.22 pence.
Oil prices edged higher on Friday but were set to end the week broadly steady. Sluggish economic growth in China raised concerns about fuel demand and countered optimism from the signing of a China-U.S. trade deal.
Brent crude futures were up 44 cents at $65.06 by 1014 GMT. U.S. West Texas Intermediate futures were up 35 cents at $58.87 a barrel.
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Sources: Reuters, Investing, CNN money