China's economic growth weakest in 27 years

Marco Green
October 18, 2019

China's economic growth slowed more than expected to 6% year-on-year in the third quarter, the weakest pace in at least 27-1/2 years, as demand at home and overseas faltered amid a bruising Sino-U.S. trade war.

Fresh figures released overnight show Chinese GDP grew just 6% between July and September.

The data increase the risk that the government won't hit its target of achieving growth of 6% to 6.5% for 2019, unless support measures are significantly stepped up. That's less than economist forecasts for 6.1%, slower than the 6.2% expansion recorded in the previous quarter, and is the lowest level recorded since the early 1990s.

Services and high-tech manufacturing were the key areas of growth, while employment was "generally stable", he added.

Earlier this week the central bank said it was pumping 200 billion yuan ($28 billion) into the financial system through its medium-term lending facility to banks, which is created to maintain liquidity. To give its economy a shot in the arm, Beijing has pushed forward a raft of stimulus measures this year, including higher tax reimbursement rates for exporters dealing with U.S. tariffs, boosting bank lending and increased spending on major infrastructure projects including roads and railways.

This week, Beijing posted weaker-than-expected import and export figures for September after Washington imposed new tariffs that month.

Other reports by Click Lancashire

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