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Chinese Economic Growth Minimum Since 2009

Saturday 20 October 2018

BEIJING (Reuters) — China’s economic growth in the third quarter showed the weakest performance since the 2009 financial crisis, Reuters reported, citing data from the Chinese National Bureau of Statistics.

In the third quarter, China’s GDP grew by 6.5% compared with the same period last year, in the second quarter, growth was more than 6.7%. Analysts polled by Reuters expected the Chinese economy to grow by 6.6% from July to September. GDP growth was the weakest quarterly growth in annual terms since the first quarter of 2009 — the height of the global financial crisis, the agency said.

“The trend is slowing down, despite promises from the Chinese authorities to encourage domestic investment to support the economy. Domestic demand was weaker than unexpectedly steady exports”, Kotian Hirayama, senior emerging markets economist at Tokyo-based SMBC Nikko Securities, told Reuters.

The slowdown in Chinese GDP growth is taking place against the backdrop of a trade war between the US and China, the agency notes. Washington introduced import duties on a number of Chinese goods; Beijing was forced to introduce retaliatory measures. Both countries have repeatedly introduced import duties against each other. “Looking to the future, economic prospects are not optimistic. Exports will face further difficulties due to US tariffs”, said Hwabao Trust Shanghai analyst Nie Wen. “Next year, GDP growth is likely to slow to 6–6.2%”, he predicts.

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