China’s economic growth slowed more than anticipated to the weakest pace since the first quarter of 2009 as the country’s trade war with the U.S. puts pressure on growth, according to official data released on Friday.
the earth’s second-largest economy said its economy grew 6.5 percent year-over-year inside the third quarter of 2018. which missed expectations for a 6.6 percent growth, according to analysts polled by Reuters. The latest GDP data also came in lower than the 6.7 percent year-over-year expansion inside the previous quarter.
Despite the GDP miss, China’s stock markets recovered by earlier losses to trade in positive territories. The Shanghai composite was about 0.37 percent higher, along with the Shenzhen composite inched up 0.325 percent.
On a quarter-on-quarter basis, China’s economy grew 1.6 percent, according to the National Bureau of Statistics. which met the estimates by economists in a Reuters poll.
Kelvin Tay, regional chief investment officer at UBS Global Wealth Management, said the slowdown in China’s growth can be not surprising.
“China cannot be growing at 6.6-6.7 percent every quarter because of the fact which they’re starting to deleverage along with also for the fact which you’ve got a trade dispute going on with the Americans,” he told CNBC’s “Street Signs” after the GDP data Discharge.
In addition to the latest GDP figures, China also released a slew of additional economic data:
- Industrial production for September grew 5.8 percent compared to a year ago, missing expectations of a 6 percent expansion by Reuters.
- Retail sales for September jumped 9.2 percent compared to the same month last year, beating Reuters’ estimates of a 9 percent increase.
- Fixed asset investment for January-to-September grew 5.4 percent year-over-year, beating Reuters’ forecast of a 5.3 percent growth.
Although Beijing’s official GDP figures are tracked as an indicator of the health of the earth’s second-largest economy, many outside experts have long expressed skepticism about the veracity of China’s reports.
Nevertheless, any signals about growth are closely watched amid China’s trade fight with the U.S. as the two economic superpowers slap tit-for-tat tariffs on each additional’s goods.