|Y/Y % Change||7.2%||7.3%||7.3%|
|Q/Q % Change||1.5%||1.9%|
Fourth quarter gross domestic product was up 7.3 percent from the same quarter a year ago and slightly above forecasts of 7.2 percent growth. For the year 2014, GDP was up 7.4 percent after growing 7.7 percent in both 2012 and 2013. The 2014 growth rate was the slowest since the 3.8 percent recorded in the post-Tiananmen chill of 1990. On a seasonally adjusted basis, GDP was up 1.5 percent from the third quarter after expanding 1.9 percent in the third quarter.
The economy is expected to continue to grow more slowly going forward partly as a result of its far larger size. A slowdown in the overheated real estate market that began last year is expected to continue this year, exacerbating problems for industries such as steel, cement and glass that are suffering from chronic overcapacity. To a certain extent, the economy's performance last year was also a reflection of Beijing's willingness to accept lower growth rates.
Gross Domestic Product (GDP) refers to the final products at market prices produced by all resident units in a country (or a region) during a certain period of time. GDP is the core indicator of the national accounts, and also an important indicator to measure the economic conditions and the level of development of a country or region. GDP is calculated from three approaches -- production, income and expenditure -- which reflect gross domestic product and its composition from different angles.
GDP is the all-inclusive measure of economic activity. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.
The data are compiled by NBS and the People's Bank of China (PBoC). Estimates for non-financial corporations, financial corporations, general government, household and the rest of the world sectors are published. The production accounts, distribution and use of income account, and capital account data are compiled by NBS. NBS also develops the financial account by rearranging financial transactions data in the flow of funds accounts compiled by PBoC. There are no breakdowns of government consumption expenditure, gross fixed capital formation, change in inventories and net exports. Household consumption expenditures are broken down into urban and rural. The income components of GDP are only published in the input-output tables. NBS uses the Chinese Industrial Classification of the National Economy.
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