The Chinese economy, the world's envy, has grown at its slowest in 13 years, posting 7.8 % growth in 2012 amid all-round woes. The National Bureau of Statistics says that the growth rate is down from 9.3 % in 2011 and 10.4 % in 2010. The Chinese economy, driven by exports, has missed its double-digit growth.
However, the fourth-quarter growth has accelerated to 7.9 % on the back of growth-friendly measures. The rate ends a slowdown lasting seven quarters. In 2012, the gross domestic product was $ 8.28 trillion (Re. 4, 55, 40000 Cr).
Besides rapid urbanisation, which is now 53 % and is drastically changing China's agrarian economy, it also faces a demographic crisis due to its one-child policy affecting its cheap labour availability. China has about 18.5 crore people above 60 (13.7 % of population), a figure expected to soar 30% by 2030.
Flush with forex at $ 3.31 trillion, China is to step up investments to improve infrastructure to spur growth. It is also reorienting its exports strategy to move away from European Union, its biggest trade partner, to emerging markets. Measures have also been taken to cool the property market to avert a bubble.