China's economy: a milestone for moderation

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China's economy: a milestone for moderation. Today's publication of China's GDP data for 2014 will confirm the country's slowest growth in more than two decades. But the expected figure of 7.3%-still the fastest of any big economy-is hardly cause for concern. Slightly slower growth is part of the government's plan for steering the economy onto a more sustainable path as it concentrates on structural reforms such as creating a social safety net. And these days the Chinese economy is so large that growth of 7% now adds as much output-more than $700 billion-as a turbo-charged 14% did in 2007. However, even a healthy GDP figure is unlikely to assuage investors' fears about the Chinese stockmarket, which plunged by 7.7% on Monday, the biggest fall in six years. That is a long-overdue correction after a soaring rally that had little to do with economic fundamentals.

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