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China GDP Growth Weakest Since 1992

chinaflag aug14 18oct19 lt

China economy expanded at the slowest pace in nearly three decades in the third quarter amid subdued investment, industrial production and domestic demand, data from the National Bureau of Statistics showed Friday.

Gross domestic product expanded 6 percent year-on-year in the third quarter after rising 6.2 percent in the second quarter. This was the slowest growth since 1992 and below the expected rate of 6.1 percent.

The economy grew 6.2 percent during January to September period. The government targets 6-6.5 percent growth for the full year.

The International Monetary Fund forecast China's growth to slow to 6.1 percent this year and to 5.8 percent next year.

Data showed that industrial production advanced 5.8 percent annually after rising 4.4 percent in August and 4.8 percent in July. Output was expected to climb 4.9 percent.

Similarly, annual growth in retail sales increased to 7.8 percent, in line with expectations, from 7.5 percent in August.

During January to September, fixed asset investment grew 5.4 percent, which was slightly slower than the forecast of 5.5 percent increase.

Real estate investment increased 10.5 percent in January to September, the same pace of growth as seen in the first eight months of the year.

The unemployment rate remained unchanged at 5.2 percent in September, data revealed.

The domestic economy is under downward pressure but growth will remain in a reasonable range, the statistical office said.

Pressure on economic activity should intensify in the coming months, Julian Evans-Pritchard and Martin Rasmussen, economists at Capital Economics, said.

Cooling global demand will continue to weigh on exports, fiscal constraints mean that infrastructure spending will wane in the near-term and the recent boom in property construction looks set to unwind, the economists noted.

The economists expect monetary policy to be loosened before long in response, but it will take time for this to put a floor beneath economic growth.

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