China on Monday announced that its official economic growth came in at 6.6 percent in 2018 — the slowest pace since 1990.
That announcement was highly anticipated by many around the world amid Beijing’s ongoing trade dispute with the U.S., its largest trading partner.
Fourth quarter GDP growth was 6.4 percent, matching expectations. That was a decline from the 6.5 percent year-over-year growth in the third quarter of 2018.
Although Beijing’s official GDP figures are tracked as an indicator of the health of the world’s second-largest economy, many outside experts have long expressed skepticism about the veracity of China’s reports.
Even before increased trade tensions with the U.S., China was already trying to manage a slowdown in its economy.
Beijing is trying to balance a crackdown on high debt levels while also maintaining economic growth. While reducing reliance on debt would benefit the economy in the long run, it likely means a far slower pace of growth than the country has seen in recent years.
Nevertheless, economic data from China are being closely watched for signs of damage inflicted by the trade war with Washington.
While official data indicated China’s economy held up for much of last year, it now appears to be slowing. Production metrics and export orders are falling as the country’s trade dispute with the U.S. drags on and other factors weigh on growth.
Both sides have been trying to negotiate a deal.
China has offered a six-year boost in imports during its ongoing talks with the U.S., officials familiar with the matter told CNBC last week.
China pegged its proposal to buy more U.S. goods through 2024 to President Donald Trump’s hopes of being re-elected in 2020, the sources told CNBC.
China’s top trade negotiator, Vice Premier Liu He, will visit Washington, D.C., on Jan. 30 for two days of talks with U.S. trade representative Robert Lighthizer.
—CNBC’s Kayla Tausche and Michael Sheetz and Reuters contributed to this report.