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Beijing (AP) — China’s economic growth has subsided in recent quarters as construction slowdowns and curbing energy use have weighed on the recovery of the coronavirus from a pandemic.
According to government data, the world’s second-largest economy increased by 4.9% from a year ago in the three months to September, down from 7.9% in the previous quarter.
Investment in factory production, retail sales, construction and other fixed assets has all weakened.
The construction industry, the industry that supports millions of jobs, has slowed since regulators tightened developer borrowing control last year.
One of the largest groups, the Evergrande Group, is struggling to avoid multi-billion dollar defaults payable to bondholders. Economists say the threat to global financial markets is small, but it fuels health concerns of other developers.
Manufacturing was also hampered in September by power outages imposed by several major states to ensure that official efficiency targets were not exceeded.
Private sector forecasters have lowered China’s growth outlook so far, but still expect it to be around 8%, which is one of the strongest in the world.
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China’s economic growth weakens as construction slows | WGN Radio 720
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