Categories: Economy

Acute power shortages and real estate woes take their toll–China’s third quarter growth slows to 4.9%

<p>
Amid acute power shortage and crisis-hit real estate sector China’s economic growth in the third quarter of this year slowed to 4.9 per cent, much below expectations.</p>
<p>
In the January to March quarter Beijing had stunned the world with an 18.3 per cent economic growth. However, economic growth has been slowing since then. In the second quarter, China, the first country to come out of the Covid 19 pandemic, clocked a GDP growth of 7.9 per cent.</p>
<p>
An increase in raw material costs and supply side constraints have also had a direct impact on the country’s economic indicators.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/china-s-exports-are-dipping-sharply-again-is-the-world-s-second-largest-economy-in-trouble-112879.html">China's exports are dipping sharply again–is the world's second largest economy in trouble?</a> </strong></p>
<p>
China’s official manufacturing purchasing managers’ index (PMI) too dropped to a 19 month low of 49.6 in September from 50.1 in August leading to worries that economic recovery for the Asian giant could take longer than expected.</p>
<p>
The PMI is an indicator, reflecting the trends of economic trends in the manufacturing and service sectors. A reading below 50 is taken as a contraction.</p>
<p>
To add to the woes, China’s debt levels have been steadily rising and now with the default of the country’s real estate major Evergrande Group, worries have multiplied.</p>
<p>
Meanwhile, Chinese President Xi Jinping’s call for Common Prosperity has also dampened investors as well as citizens.</p>
<p>
Analysts told India Narrative that the economic slowdown could continue if the current trends are not reversed.</p>

IN Bureau

Recent Posts

“Iran launched over 450 ballistic missiles and hundreds of UAVs in last 6 days,” Israel Defence Spox says

Israel Defence Forces Spokesperson Brigadier General Effie Defrin on Thursday said that Iran has expressed…

12 hours ago

French company Safran ties up with HAL to produce LEAP engines’ forged parts

India's Hindustan Aeronautics Limited (HAL) and French engine manufacturer, Safran Aircraft Engines, signed an agreement…

15 hours ago

India records highest growth in power generation after US & China in last five years: IEA

India has emerged as a country with the third-largest growth in power generation capacity globally…

15 hours ago

PM Modi lauds Grandmaster Divya Deshmukh for defeating world number one in World Team Blitz Championships

Prime Minister Narendra Modi hailed Indian chess grandmaster Divya Deshmukh for defeating world number one…

15 hours ago

Pakistan: Mahrang Baloch’s sister accuses prison authorities of harassing them during jail visit

The family of detained Baloch leader Mahrang Baloch has accused prison authorities at Quetta's Hudda…

16 hours ago

“Great news for education sector”: PM Modi hails India’s 2026 QS World University Rankings

The QS World University 2026 Rankings bring great news for our education sector, as the…

17 hours ago