China's GDP growth in the third quarter was the slowest since 2009 and exceeds expectations

BEIJING (Reuters) – 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 recorded a 6.5% growth in the third quarter compared to the previous year, a slowdown compared to the second quarter, said Friday the National Bureau of Statistics. 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%, 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 expected many analysts.

Recent economic data has revealed a weakening of domestic demand, marked by a slowdown in factory activity, investment in infrastructure and consumer spending, since a multi-year crackdown on loans and debt more risk has led to higher corporate borrowing costs.

Economists expect China's year-round growth to reach 6.6 percent this year, which will be perfectly in line with the government's target of 6.5 percent, and 6.3 percent. % next year.

Beijing and Washington have spoiled the most favorable tariffs in recent months, and preparations for bilateral trade talks to resolve the dispute have come to a standstill, disrupting domestic markets and exerting pressure on weakened and weakened China.

Surprisingly, Chinese exports moved up a gear in September, thanks in large part to front-loading shipments to avoid the more demanding US tariffs. 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 released on Friday showed China's industrial production growth weakened to 5.8 percent in September from a year earlier. Forecasts were lacking as capital expenditures grew slightly faster than expected at 5.4% in the first nine months of the year.

Factory yield was the lowest since February 2016.

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

In the face of a slowing economy, stock market fluctuations and pressure on the Chinese currency, policymakers are increasingly focusing on reducing risks to growth by gradually easing monetary and fiscal policies.

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

Aware of these risks, the governor of the Chinese central bank, Yi Gang, said on Sunday that there was still much to be done for an interest rate adjustment and that the banks' cash level needed to stay in. Reserve.

But Yi also said the country's economic growth would still reach its annual target of 6.5% with a possibility of overtaking.