BEIJING — China's economic growth hit a three-decade low in 2018, adding to pressure on Beijing to beef up stimulus measures and settle a tariff war with Washington.
Growth slowed to 6.6 percent from 2017's 6.9 percent as both the world's appetite for China's exports and domestic consumer spending weakened, official data showed Monday.
Forecasters said they expect Beijing to try to shore up growth by making credit cheaper, raising government spending and adopting measures to encourage sales of autos and consumer goods.
Communist leaders want to steer China toward slower, more self-sustaining growth driven by consumer spending instead of trade and investment. But the slowdown has been sharper than expected, prompting Beijing to boost spending on construction of roads and bridges and to order banks to lend more, especially to the entrepreneurs who generate most of China's new jobs and wealth.
"Downward pressure on the economy is increasing," the commissioner of the National Bureau of Statistics, Ning Jizhe, said at a news conference. He cited import controls, volatile financial markets and declining investment spending as factors.
Let our news meet your inbox. The news and stories that matters, delivered weekday mornings.
Still, Ning insisted China can resist shocks, saying "the long-term trend of stability will not change."
Economic growth in 2018 was the lowest since 1990's 3.9 percent following the violent crackdown on pro-democracy protests centered on Beijing's Tiananmen Square.
Growth in the last quarter of 2018 dipped to 6.4 percent — the lowest quarterly level since the 2008 global crisis — from the previous quarter's 6.5 percent.
"The government is expected to implement more fiscal and monetary stimulus measures to support economic growth," Yanjun Lin of IHS Markit said in a report.
Growth in investment, retail spending and factory activity all declined, though analysts pointed to a flicker of improvement in manufacturing in December. It grew by 5.7 percent over a year earlier, up 0.3 percentage points from November.
Production of plastics, metals and specialized industrial machinery accelerated, "suggesting warming expectations for a pick-up in investment," Chaoping Zhu of J.P. Morgan Asset Management said in a report.
The trade dispute with the U.S. is proving costly.
Exports held up through most of 2018 despite President Donald Trump's tariff hikes on Chinese imports in a fight over Beijing's technology ambitions. But they contracted in December as the penalties began to depress U.S. demand.
The two sides have imposed tariff hikes of up to 25 percent on tens of billions of dollars of each other's goods in the fight over U.S. complaints that Beijing steals or pressures companies to hand over technology. Washington wants China to roll back plans for state-led industry development that its trading partners say violate its market-opening obligations.
The trade dispute, and reports of job losses and tumbling sales of autos and real estate, have unnerved Chinese consumers that Beijing is counting on to drive growth. As pocketbooks snap shut, the downturn could worsen.
China's top trade envoy, Vice Premier Liu He, is due to visit Washington for talks Jan. 30-31.