US trade war: China's third-quarter GDP growth weakest since 2009

BEIJING: China's economic growth in the third quarter has slowed at its weakest pace since the global financial crisis and has not met expectations, while a multi-year campaign for its Attacking the risks of debt and the trade war with the United States was beginning to be felt.

The economy grew 6.5% in the third quarter compared with the previous year, slower than the second quarter, the National Bureau of Statistics said Friday. Analysts polled by Reuters forecast a 6.6% growth in the economy between July and September.

GDP reading was the weakest quarterly growth of one year on the other since the first quarter of 2009 at the height of the global financial crisis.

On a quarterly basis, growth slowed from 1.7% revised in the second quarter to 1.6%, which is in line with expectations of 1.6% growth.

It is important to note that sequential growth in the second quarter was revised downward from the previously announced 1.8%, suggesting that the economy was less dynamic in the second half than many badysts had predicted.

Recent economic data point to a weakening of domestic demand with a slowdown in factory activity, investment in infrastructure and consumer spending, while a multi-year crackdown on loans and lending. riskier borrowing has led to higher corporate borrowing costs.

Economists expect China's full year growth to reach 6.6 percent this year, which is easily in line with the government's target of 6.5 percent and 6.3% next year.

Beijing and Washington have spoiled the most favorable tariffs in recent months, and bilateral trade talks are aimed at resolving the dispute, triggering a defeat in domestic markets and exerting pressure on weakened and weakened China.

Surprisingly, Chinese exports picked up speed in September, largely as a result of front-loading business shipments to escape stricter rights in the United States. But higher sales generated a record trade surplus with the United States, which could exacerbate the already exacerbated conflict between the two economic superpowers.

Separate data showed Friday that China's industrial production growth had fallen to 5.8% in September from the previous year, thus missing expectations, while investment in Fixed capital rose slightly above 5.4% in the first nine months of the year.

The reading of factory production was the lowest since February 2016.

Retail sales rose 9.2% in September over the previous year.

Confronted with a slowdown in the economy, stock market fluctuations and monetary pressure on the yuan, policymakers have now made it a priority to reduce risks to growth by progressively easing monetary and fiscal policies .

Last week, Central China announced the reduction of its fourth reserve requirement ratio (RRR) this year, intensifying its efforts to reduce financing costs due to concerns over the economic slowdown caused by the trade dispute. with the United States.

Acknowledging these risks, the governor of China's central bank, Yi Gang, said on Sunday that there was still much to be done for an adjustment of interest rates and that the banks' cash level had to stay in reserve.

But Yi also said that the country's economic growth would still reach its annual target of about 6.5% with a risk of overshooting.