CHINA grew at its slowest pace in six years in the first quarter and weakness in key sectors suggested the world’s second-largest economy was still losing momentum, intensifying its struggle to find the right policy mix to shore up activity.

    Measures to support the property sector and a series of cuts in interest rates and bank reserve requirements look to have delivered less support to the economy than hoped, apart from feeding a stock market surge, raising expectations of more stimulus soon.

    Gross domestic product (GDP) grew an annual 7 percent in the first quarter, slowing from 7.3 percent in the fourth quarter of 2014, the National Statistics Bureau said yesterday.

    The latest figure was better than the forecasts of multiple institutions that first-quarter growth would fall slightly below 7 percent due to weak investment and demand.

    It was China’s weakest expansion since the first quarter of 2009, when the global financial crisis saw growth tumble to 6.6 percent.

    But it has met an annual growth target of around 7 percent set by the Chinese Central Government for 2015.

    “The Chinese economy is generally holding steady in the first quarter because employment, consumer prices and market expectations are basically stable, despite a slowdown in economic growth,” the bureau’s spokesperson Sheng Laiyun said at a press conference in Beijing.

    Sheng said the slowdown was expected as the Chinese Government predicted tough challenges and continued downward pressure for the economy this year.

    Sheng attributed the slowdown to sluggish global economic recovery in the post-crisis period and the ongoing structural reforms at home.

    The first-quarter GDP totaled 14.07 trillion yuan (US$2.29 trillion), up 7 percent year on year, according to Sheng.

    Sheng said that, despite slower industrial output and investment growth, the country has steadily pushed forward structural reforms that led to a better industrial layout and rises in personal income.

    (More on Page 9)  (SD-Xinhua)