GDP growth in the third quarter slowed to the lowest level since 2009
China’s economic growth in the third quarter slowed to its weakest level since the global financial crisis. Growth rates have fallen to the lowest level since 2009, when the global financial crisis peaked, as efforts to resolve debt risks over the years and trade wars with the US began to affect the economy.
According to the National Bureau of Statistics, China’s economy grew 6.5 percent in the third quarter on the 19th, falling below the forecast of 6.6 percent.
On a quarterly basis, economic growth fell to 1.6% from 1.7% in the second quarter.
The second quarter’s quarterly growth rate also revised down from the previous 1.8%, suggesting that the momentum in the second half of the year will be lower than expected by many analysts.
With years of high-risk lending and debt cracking, companies’ borrowing costs have risen, while recent economic indicators point to weakening domestic demand, from manufacturing activity to infrastructure investment and consumer spending.
Economists expect China’s annual growth rate this year to reach 6.6 percent this year and the government’s 6.5 percent target. The growth rate is expected to slow down to 6.3% next year.
The Chinese stock market has fallen as China and the United States have imposed retaliatory tariffs in recent months and the bilateral trade negotiations plan has stalled, and the already weak Chinese economy and currency are under pressure.
China’s exports in September were unexpectedly strong, as companies were shipping to avoid US tariff hikes. However, with the increase in sales, the trade surplus between the United States and Japan may reach a record high, which may worsen disputes between the two countries.
On the other hand, according to the data released on the same day, the growth rate of industrial production in China decreased to 5.8% YoY in September and reached the lowest level since February 2016. Fixed asset investment in January-September increased slightly by 5.4%.