Chinese quarterly GDP growth at 6-yr-low of 6.9%

China's economy grew at 6.9 per cent in the third quarter of this year, posting its worst showing since the 2009 global financial crisis which could prompt the Communist giant to unveil a new stimulus package to arrest the slowdown of the world's second largest economy. China's economy slid below the targeted seven per cent in the third quarter this year amid continued fall of exports.

The economy posted a 6.9-per cent growth year on year in the third quarter of 2015, lower than 7 per cent in the first half of the year, China's National Bureau of Statistics (NBS) announced on Monday. In the first three quarters of the year, GDP hit 48.78 trillion yuan ($7.68 trillion) up 6.9 per cent year on year.

The service sector contributed more than half of GDP, according to the NBS. This is the first time the quarterly growth rate has dropped under seven per cent since the second quarter of 2009. 

"Expectation of a US interest rate hike prompted volatility in commodity prices, stocks and foreign currency markets. Many countries devaluated their currencies, putting more pressure on Chinese exports, one of the three pillars of China's economic growth," NBS spokesperson Sheng Laiyun said.

Also China's exports growth dropped 7.9 per cent year on year in the first three quarters to 17.87 trillion yuan. During the first nine months, industrial output grew 6.2 per cent year on year and fixed-asset investment climbed 10.3 per cent. Property investment grew 2.6 per cent year on year, while retail sales of consumer goods rose 10.5 per cent.

According to the IMF forecast, the world's second largest economy is expected to further decline to 6.8 per cent this year from last year's 7.3 per cent and further to 6.3 next year as it struggled with its shift from export-oriented economy to the one driven by consumption.

The government is consistently denying speculation about stimulus package with big ticket investments which in the past fired the Chinese economy, specially after the world economic crisis.