Chinese economic growth fell more than expected in the third quarter, as the country suffers an energy crisis and the real estate sector faces tougher policies, official data revealed on Monday.
The recovery of the world’s second-largest economy lost steam after its rapid post-pandemic resurgence, with a year-on-year expansion of 4.9% of GDP in the third quarter, the Office for National Statistics (ONS) said.
The figure is lower than the 5% forecasts of analysts consulted by AFP, and represented a slowdown from the 7.9% expansion in the April-June period.
“We should note that the uncertainties in the current international environment are increasing and that the domestic economic recovery is still unstable and uneven,” ONS spokesman Fu Linghui said in a statement.
“Growth was affected by a decline in real estate, recently amplified by the problems at Evergrande,” explained Louis Kuijs, head of Asian economics at Oxford Economics.
The difficulties of the real estate giant Evergrande, which has a debt of more than 300,000 million dollars, have affected the sentiment of potential buyers in the sector.
However, the Chinese central bank assured over the weekend that any impact from Evergrande will be controllable, and the governor of the institution, Yi Gang, assured Sunday in a seminar that the authorities are alert to problems with a possible non-payment of some companies.
Yi indicated that Chinese GDP should grow around 8% this year.
But Kuijs noted that there was an “additional blow in September” from blackouts and production cuts due to strict enforcement of climate and safety goals by local governments.
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