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China’s economic growth weakens amid construction slowdown – Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania 2021-10-17 23:39:00 –

China’s economic growth fell in recent quarters as construction slowdowns and official curtailment of energy use by factories weighed on recovery from the coronavirus pandemic. The world’s second largest economy grew 4.9% year-on-year from July to September. 7.9% of the previous quarter, government data showed Monday. Factory output, retail sales, construction and other fixed asset investments all weaken, make energy-hungry economies more efficient, and Chinese leaders can be dangerously high and cause finances Growth is under pressure from government regulations aimed at reducing reliance on debt, which we are concerned about. In addition, the manufacturing industry has been hampered by a shortage of parts such as processor chips due to pandemics, and compared to the previous quarter, production in July-September increased by only 0.2% according to measurement methods in other major countries. increase. This was one of the weakest quarters in the last decade, down from 1.2% in the April-June period. “Growth will slow further,” Louis Kuijs of Oxford Economics said in a report. With “ugly growth” in the coming months, Beijing is likely to try to support its operations by relaxing lending regulations and encouraging infrastructure development, he said. Borrowing by developers. One of the largest Evergrande Groups is struggling to avoid multi-billion dollar defaults payable to bondholders. Economists say the threat to global financial markets is small, but it fuels concerns about other developers. Manufacturing is depressed by power outages imposed by several major states to ensure that they do not exceed official efficiency targets. % Compared to August. This was down from 7.3% growth in the first nine months of the year. Private sector forecasters have lowered China’s growth outlook this year, although they still expect about 8%, one of the strongest in the world. The official target of the ruling Communist Party is “more than 6%”, and Beijing still has room to maintain control. “The short-term outlook for China’s economy in the fourth quarter remains tough as it is expected to be impacted by continued power shortages. A continuous slowdown in the winter and real estate sectors,” IHS Market Rajiv Biswas said in a report. I am. “The real estate sector continues to be hit by the uncertainties associated with the Evergrande debt problem and the fear of transmission to other real estate developers.” This year’s economic figures show factories to fight the coronavirus. And is exaggerated compared to 2020 when the store was closed. The economy grew by a record 18.3% in the first quarter of 2021, but forecasters said the rebound was already flat. Investment in real estate, factories, housing and other fixed assets increased 0.17% in September, down from 7.3% in the first nine months. Car sales in the world’s largest market fell 16.5% year-on-year in September. China Automobile Manufacturers Association. According to the group, production was interrupted due to a shortage of processor chips. Imports, an indicator of China’s domestic demand, increased by 17.6% in September a year ago, but only half of the 33% growth in the previous month.

China’s economic growth sank in recent quarters as construction slowdowns and official curtailment of energy use by factories weighed on recovery from the coronavirus pandemic.

According to government data, the world’s second-largest economy grew 4.9% a year ago from July to September, up from 7.9% in the previous quarter. Factory output, retail sales, construction and other fixed asset investments have all weakened.

Growth is dangerously high, under pressure from government controls aimed at making energy-intensive economies more efficient and reducing dependence on debt, which Chinese leaders are concerned about. , Can cause financial problems. Manufacture has also been hampered by a pandemic shortage of processor chips and other components.

Compared to the previous quarter, measurements in other major economies showed little increase in production during the July-September period, an increase of only 0.2%. This was one of the weakest quarters in the last decade, down from 1.2% in the April-June period.

“Growth will slow further,” Oxford Economics’ Luis Kais said in a report. He said the “ugly growth numbers” in the coming months are likely to encourage Beijing to relax lending management and try to support its activities by encouraging infrastructure development.

The construction industry, an industry that supports millions of jobs, has slowed since regulators tightly controlled developer over-borrowing 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 fear of other developers.

Manufacturing is depressed by power outages imposed by some major states in order not to exceed official efficiency targets.

Factory production in September barely increased, only 0.05% higher than in August. This was down from 7.3% growth in the first nine months of the year.

Private sector forecasters have lowered China’s growth outlook this year, but still expect it to be around 8%, which is one of the strongest in the world. The official goal of the ruling Communist Party is “more than 6%,” leaving room for Beijing to maintain its control.

“The short-term outlook for China’s economy in the fourth quarter remains difficult due to the continued power shortages that continue in the winter and the expected impact of a continued slowdown in the real estate sector,” Rajiv Biswas of the IHS market said in a report. I am. “The real estate sector continues to be hit by the uncertainties associated with the evergrande debt problem and the threat of infecting other real estate developers.”

This year’s economic figures are exaggerated compared to 2020, when factories and stores were closed to fight the coronavirus.

The economy grew by a record 18.3% in the first quarter of 2021, but forecasters said rebounds were already flat.

Retail spending growth in September fell from 16.4% in the first nine months to 4.4% year-on-year.

Investment in real estate, factories, housing and other fixed assets in September increased 0.17% from 7.3% in the first nine months.

According to the China Automakers Association, car sales in the world’s largest market fell 16.5% year-on-year in September. The group said production was interrupted due to a shortage of processor chips.

Imports, an indicator of China’s domestic demand, increased 17.6% year-on-year in September, but only half of the 33% increase in the previous month.

China’s economic growth weakens amid construction slowdown Source link China’s economic growth weakens amid construction slowdown

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