China Slows in Q1; World Markets, Gold Sell-Off
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Overnight it was reported that China's GDP grew 7.7 percent in the first quarter, which was down from the 7.9 percent growth in the fourth quarter and below economists expectations of 8 percent growth.
The government cited the global economic situation and domestic controls to slow property speculation. China said the data also reflects its efforts to focus more on stable growth versus the volatility created by hyper-growth.
"The new government has concentrated more on raising the quality of economic growth," a spokesman for China's National Bureau of Statistics said. "7.7% is not a low growth rate given the global and domestic situation, and it's good for companies' restructuring and industrial upgrading."
Economists, however, expressed concerns about the numbers especially amid a fast growing money supply. Credit is growing but not finding its way into the economy, some said.
The data from China has markets around the world weaker. In Asia, the Hang Seng fell 1.4 percent, the Nikkei fell 1.55 percent. In the U.S., S&P 500 futures are down 9 points, or 0.6 percent, and Dow futures are down 48 points, or 0.3 percent.
Gold is continuing its massive sell-off, falling another 6 percent to $1,406 a troy ounce.
The government cited the global economic situation and domestic controls to slow property speculation. China said the data also reflects its efforts to focus more on stable growth versus the volatility created by hyper-growth.
"The new government has concentrated more on raising the quality of economic growth," a spokesman for China's National Bureau of Statistics said. "7.7% is not a low growth rate given the global and domestic situation, and it's good for companies' restructuring and industrial upgrading."
Economists, however, expressed concerns about the numbers especially amid a fast growing money supply. Credit is growing but not finding its way into the economy, some said.
The data from China has markets around the world weaker. In Asia, the Hang Seng fell 1.4 percent, the Nikkei fell 1.55 percent. In the U.S., S&P 500 futures are down 9 points, or 0.6 percent, and Dow futures are down 48 points, or 0.3 percent.
Gold is continuing its massive sell-off, falling another 6 percent to $1,406 a troy ounce.
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