China's economic growth slows
China's economy grew at its slowest pace since the global financial
crisis, causing speculation that the government may introduce more
Gross domestic product rose by 7.3% in the third quarter from a year
earlier, compared to 7.5% in the previous quarter, official data showed.
The figure beat market forecasts for 7.2% growth but still marked its
weakest performance since March 2009. Industrial production also came in
better than analyst estimates.
Manufacturing output rose 8% in September against a year earlier.
However, fixed asset investment and retail sales missed expectations.
China's National Bureau of Statistics said retail sales increased
11.6% from a year earlier, compared to forecasts for 11.7%.
The slowdown would have been worse had it not been for a
mini-stimulus to bolster the world's second largest economy.
China's leaders are trying to boost domestic consumption and end the
economy's reliance on exports and investment for growth. But any major
slowdown could lead to rising unemployment, potentially triggering
Fixed-asset investment excluding rural households rose 16.1% in the
first nine months from a year earlier, below analyst estimates for a
Overall, the figures show that growth continues to slow, raising
concerns it may have knock-on effects on the strength of the global
"China's slowdown comes several years after corrections began in
other emerging markets," senior international economist for PNC
Financial Services Group, Bill Adams said.
"As long as China keeps trending slower like this, it will be
difficult for global commodity prices to rise, a persistent headwind for
commodity producers like Brazil and Australia," he said.
China's government aims at achieving 7.5% economic growth this year,
but many analysts believe that they will not meet the target.
There is also speculation the government may take more steps to boost
Beijing recently introduced measures aimed at stimulating more
consumer spending, including relaxing its limits on home purchases and
injecting billions of dollars into its biggest banks.
China's Central Bank also cut the interest rate it pays lenders for
14-day repurchase agreements last week.
China economist at Capital Economics, Julian Evans-Pritchard believes
problems in the property sector have dragged on growth, but that
overall, the broader economy remains 'healthy'.
"We don't think policymakers will panic as a result of the slowdown
given that it remains highly concentrated in a few sectors suffering
The upshot is that although growth has slowed, it reflects a welcome
rebalancing away from excess investment in certain sectors of the
economy and is not cause for significant concern," he said.