China’s Growth Slows to 6.9%
HONG KONG — China’s economy grew 6.9 percent in the third quarter from a year ago, as a deepening industrial rout and slumping stock market pushed growth to its slowest quarterly pace since the global financial crisis of 2009.
The weak result in the July-to-September period compares with growth of 7 percent in each of the first two quarters of the year, but was slightly better than the 6.8 percent rate that economists had forecast. The government’s official target for the year is growth of around 7 percent.
“China was facing increasing downward pressure of domestic economic development” in the first nine months of the year, the official statistics agency said in a statement accompanying the data released Monday morning in Beijing. Still, it added, “the overall performance of the national economy was stable and moving in a positive direction.”
In addition to prompting increased volatility on stock markets around the world, questions over China’s development have affected global monetary policy. Janet L. Yellen, the chairwoman of the United States Federal Reserve, cited uncertainty over China as a reason for delaying raising interest rates after the Fed’s meeting last month.
China is struggling with an industrial slump that in recent months has appeared to be worse than the country’s leaders had anticipated. The country’s traditional growth drivers — manufacturing and housing construction — have recently become among the biggest drags on its economy, the world’s second largest after the United States.
Data released Monday showed continued pressure, with industrial production rising 5.7 percent in September, near its slowest pace since the financial crisis. Overall investment rose 10.3 percent in the first nine months of the year, its slowest rate of increase in 15 years.
In response, China’s central bank has cut interest rates five times since last November, and has taken other steps to free banks to lend more. The government has also pledged to spend hundreds of billions of dollars this year on new infrastructure projects, including rail lines and water treatment plants, to help lift growth.
China’s Growth Slows to 6.9%HONG KONG — China’s economy grew 6.9 percent in the third quarter from a year ago, as a deepening industrial rout and slumping stock market pushed growth to its slowest quarterly pace since the global financial crisis of 2009.The weak result in the July-to-September period compares with growth of 7 percent in each of the first two quarters of the year, but was slightly better than the 6.8 percent rate that economists had forecast. The government’s official target for the year is growth of around 7 percent.“China was facing increasing downward pressure of domestic economic development” in the first nine months of the year, the official statistics agency said in a statement accompanying the data released Monday morning in Beijing. Still, it added, “the overall performance of the national economy was stable and moving in a positive direction.”In addition to prompting increased volatility on stock markets around the world, questions over China’s development have affected global monetary policy. Janet L. Yellen, the chairwoman of the United States Federal Reserve, cited uncertainty over China as a reason for delaying raising interest rates after the Fed’s meeting last month.China is struggling with an industrial slump that in recent months has appeared to be worse than the country’s leaders had anticipated. The country’s traditional growth drivers — manufacturing and housing construction — have recently become among the biggest drags on its economy, the world’s second largest after the United States.Data released Monday showed continued pressure, with industrial production rising 5.7 percent in September, near its slowest pace since the financial crisis. Overall investment rose 10.3 percent in the first nine months of the year, its slowest rate of increase in 15 years. In response, China’s central bank has cut interest rates five times since last November, and has taken other steps to free banks to lend more. The government has also pledged to spend hundreds of billions of dollars this year on new infrastructure projects, including rail lines and water treatment plants, to help lift growth.
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