Arab Today, arab today china economic growth falls to 5year low of 73
Last Updated : GMT 05:27:04
Arab Today, arab today
Arab Today, arab today

China economic growth falls to 5-year low of 7.3%

Arab Today, arab today

Arab Today, arab today China economic growth falls to 5-year low of 7.3%

China's gross domestic product (GDP)
Beijing - AFP

China's gross domestic product (GDP) expanded in the third quarter at its slowest pace since the depths of the global financial crisis, official data showed Tuesday, but analysts said the world's second-largest economy may have bottomed out.
The 7.3 percent year-on-year increase in July-September was lower than the 7.5 percent expansion in the previous three months, the National Bureau of Statistics (NBS) said, and the slowest since the 6.6 percent in the first quarter of 2009.
However, it exceeded the median forecast of 7.2 percent in an AFP survey of 17 economists.
China's economy -- a key driver of global growth -- is suffering from a deflating property bubble, a crackdown on corruption and weak demand from Europe, prompting authorities to introduce monetary easing measures.
While the headline figure was likely to add to concerns about the world economy, officials were quick to put a largely positive spin on it.
China showed "good momentum of stable growth" in the first three quarters, said NBS spokesman Sheng Laiyun, with "progress made and quality improved".
But he acknowledged the third-quarter slowdown was partly due to "unexpectedly greater pains brought by the structural reform" which included "still pronounced overcapacity in traditional industries" and a correction in the property market this year.
“The internal and external environment is still complicated and the economic development still faces many challenges," he said.
The NBS said GDP expanded 7.4 percent in January-September, and Sheng said growth had remained in a "reasonable range" as, among other factors, job creation was stable.
China's official 2014 growth target is about 7.5 percent in March, the same as last year, though officials including Premier Li Keqiang have openly stated it could come in lower.
The analysts polled by AFP forecast growth of 7.3 percent this year, unchanged from the previous estimate three months ago but slower than actual growth of 7.7 percent in 2013.
“The momentum of the economy bottoming out and stabilising is now relatively clear," Ma Xiaoping, a Beijing-based economist for British bank HSBC, told AFP. "Currently there’s no risk of an accelerated slowdown,” she added.
- New normal -
The NBS also said industrial production, which measures output at factories, workshops and mines, rose 8.0 percent year-on-year in September, against a more than five-year low of 6.9 percent in August.
"This is encouraging, as of all the monthly data, industrial production has the strongest correlation with GDP growth, so this bodes well for an economic recovery this quarter," Nomura economists wrote in a reaction note to Tuesday's data.
Retail sales, a key indicator of consumer spending, expanded 11.6 percent in September, while fixed asset investment, a measure of government spending on infrastructure, rose 16.1 percent on-year in the first nine months.
However, Liu Dongliang, of China Merchants Bank, said the GDP figure was "a result of multi-rounds of mini-stimulus measures, showcasing that the pressure of the economic downturn is still relatively high".
Chinese stocks edged down Tuesday, with the benchmark Shanghai Composite Index closing 0.72 percent lower at 2,339.66.
Authorities have since April used a series of measures to underpin growth, on a far smaller scale than the 4.0 trillion yuan stimulus of 2008 introduced to battle the effects of the global financial crisis.
Beijing has so far used targeted cuts in reserve requirements -- the amount of funds banks must put aside -- as well as a 500 billion yuan injection into the country's five biggest banks for re-lending.
Analysts are divided over whether the central People's Bank of China might resort to an across-the-board reserve requirement cut or even slashing interest rates.
The government still has weapons in its arsenal, including greater infrastructure spending and tax cuts, while easier mortgage lending polices announced last month could take the sting out of falling housing prices, they say.
Declines in average new home prices in 100 major cities accelerated in September, dropping for the fifth straight month, a private survey showed.
The NBS said Tuesday that China's total home sales fell 10.8 percent year-on-year to 4.05 trillion yuan in the first nine months of 2014.
China's leaders have indicated that lower growth is the new normal as they carry out long-awaited economic reforms and transform the country's growth model to one driven by consumer spending.
"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," Julian Evans-Pritchard, China economist at Capital Economics, said in a note.
"With policymakers now prioritising employment and economic rebalancing over growth, we don't think they will feel the need to act aggressively to shore up the economy in response to today's data."

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china economic growth falls to 5year low of 73 Arab Today, arab today china economic growth falls to 5year low of 73

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today 17.4m tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4m tourists visit UAE in 2016
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday