Bloomberg reported that China estimates that growth slowed to 7.6% this year, with mounting challenges putting pressure on the nation's traditional growth model of investment led spending.
According to the official Xinhua News Agency, the calculation for the gain in gross domestic product for 2013 was included in a report by the State Council, or cabinet, to the legislature, and compares with a government target of 7.5%. A 7.6% pace would mark a third straight annual drop in the expansion rate.
Mr Xu Shaoshi minister in charge of the National Development and Reform Commission, told legislators in a briefing on the report Xinhua said. The State Council document listed among the looming challenges a worsening in pollution and social conflicts. Xu said the nation's traditional growth pattern is challenged by rising labor and environmental costs, according to Xinhua.
Twenty-seven Chinese provinces and cities raised the minimum wage in 2013 by an average of 17 per cent, Xinhua reported on Thursday, citing Yin Weimin, minister of human resources and social security.
The GDP release came as China's central bank sought to ease a liquidity crunch in the market for loans between banks, as financial markets were roiled by the second spike in borrowing costs this year. The People's Bank of China two days ago conducted its first reverse-repurchase operation in three weeks, stepping up efforts to provide lenders with cash after the biggest surge in rates since 2011 sparked a sell-off in Chinese shares traded in Shanghai, Hong Kong and New York. The Shanghai Composite Index fell 1.1% to 2,082 at 12 PM on Thursday, after slumping 5.1% last week.
A report by the Chinese Academy of Social Sciences said the central bank shouldn't overly tighten monetary policy for 2014 and suggested that money supply grow at 14% for 2014 from the target of 13% in 2013, according to a story in Shanghai Securities News on Thursday.