China’s economy plunged to its slowest rate of growth in a year in Q3, hampered by power shortages, supply chain constraints, and crisis in the property market. CSI 300 Index down -1.16%, CNY USD up +0.05%
- Figures published on Monday revealed gross domestic product expanded 4.9% in July-September from a year earlier, the weakest pace since the third quarter of 2020 and below the anticipated levels.
- The world’s second-largest economy is facing major hurdles, including the China Evergrande Group debt crisis, supply chain bottlenecks, and major power crunch that led to a decline in factory output since early 2020.
- National Bureau of Statistics (NBS) spokesperson Fu Linghui stated that the recovery of the domestic economy remains unstable and uneven.
- China’s economy had recorded an impressive recovery from last year’s plunge due to effective containment of the COVID-19 virus and hot overseas demand for China’s manufactured goods.
- Meanwhile, the rebound has lost pace from the soaring 18.3% growth recorded in the first quarter of this year.
- China leaders, concerned that a persistent property crisis could undermine the nation’s long-term ascent, are highly likely to impose tough curbs on the sector even as the economy slows down.