China’s economy grew 7.7 per cent in the first quarter of 2013 compared to a year earlier, a surprising slowdown that underlines the challenges facing its new leaders as they try to keep growth on track while also pursuing deeper economic reforms.
Gross domestic product had rebounded to 7.9 per cent growth in the final quarter of last year, ending a nearly two-year slowdown. Most analysts had expected the economy to have a stronger start to 2013.
But a sluggish manufacturing sector and soft consumption presented headwinds in the first three months of the year. Industrial production grew 9.5 per cent, half a percentage point lower than last year. Meanwhile, retail sales rose 12.4 per cent in the first quarter, 1.9 percentage points lower than last year.