The Chinese economy is losing momentum and prospects are darkening | Economy | World

The economic growth of China slowed more than expected in the third quarter, as weak data on industrial production and what the government described as a "serious international situation" hindered efforts to stabilize the economy. Economy and achieve its growth objectives.

Gross Domestic Product grew 6.5% in the September quarter compared with the same period last year, compared to 6.6% in a Bloomberg survey. and the 6.7% pace of the previous quarter. This is the slowest since the aftermath of the 2009 global financial crisis.

The economy has been facing increasing difficulties this year, as trade tensions escalate and stock market crash undermines confidence in the markets. prospects. These problems have led the authorities to intensify stimulus measures and to promise additional support, but the impact of these measures has not yet materialized and could be even more necessary.

Mao Shengyong, spokesman for the National Bureau of Statistics, said at a meeting on Friday that, while the international situation exerted a "downward pressure" on the economy China's growth remained stable and the country was on track to reach its full-year growth target of close to 6.5 percent.

"The Chinese economy is losing steam," said Frederic Neumann, co-director of Asia-based economic research at HSBC Holdings Plc in Hong Kong. "While it's easy to blame the trade fight with the United States until now, the slowdown is mainly due to domestic factors, with a decline in infrastructure spending and a decline in sales. "

PROMESS

Deputy Prime Minister Liu He, an important economic advisor to President Xi Jinping, as well as leaders of the central bank, regulators of banks and insurance and Securities regulators issued statements Friday, where they expressed support for the market and promised measures to help ease the financial pressures on companies, especially those on which many actions have been taken. The authorities have not promised any direct intervention.

million. Liu said that the trade war had psychologically affected China, that the government was in touch with the United States and "paid special attention" to the healthy and steady development of the stock market.

The Minister also denied claims that the private economy would have been marginalized as state enterprises progressed. He said that "this is not true" and added that the two sectors are interdependent and should cooperate and that it is "totally wrong" for some banks to consider that it is safer to grant loans to state-owned companies only to private companies.

They seem solid: the GDP for the whole year could increase between 6.5% and 6.6%, according to the trend, "said Zhou Hao, senior emerging markets economist at Commerzbank AG Singapore, adding that in any case this would fulfill the official objectives.At the same time, "the leaders worry about the instability of the financial market and the low market confidence. Policies could become more flexible and even stimulating in the future, "he said.