China Q1 GDP growth dips to 6-year low

China`s economy expanded 7 percent in the first quarter this year, posting its the weakest pace in six years. China has cut interest rates twice since November last year to stimulate its economy, but the latest figure suggests the country could further loosen monetary policy in coming months.

The figure announced by China`s National Bureau of Statistics on Wednesday was lower than 7.3 percent in the final quarter of last year, and the worst since the first quarter of 2009 when the economy grew 6.6 percent in the depths of the global financial crisis. Consumer prices rose by 1.2 percent, well below the 3 percent target, a clear indication that consumption sluggishness is ongoing while deflationary pressure remains stubborn. Earlier data showed that exports and imports declined by 15 percent and 12 percent, respectively, in March. All these macroeconomic figures point to a shrinking real economy.

Though China`s economy escaped a worst scenario of a 6-percent range, analysts think it would be difficult for the country to meet its GDP growth target of 7 percent this year.

National Bureau of Statistics spokesman Sheng Laiyun attributed the declining trend to "sluggish global economic recovery" and "ongoing structural reforms," and cited economic uncertainties both at home and abroad.

Analysts widely expect China to further loose its monetary policy, including an additional rate cut in the coming months.