China's economic numbers show slowing down of economy

BEIJING: The government of China on Friday reported that the economy grew by 6.5 percent over the three months that ended in September compared with an year ago.

The growth rate while fast by global standards, the pace is China’s slowest since early 2009, during the challenging times of the global financial crisis.

Sputtering growth, soaring debt and an escalating trade war with the United States are being tipped as the causes of the slowing down of China’s economy.

China has reported growth figures over the past two years that painted a picture of an economy that is moving ahead, despite the country’s lingering problems. A different narrative is emerging this year, one of a slowing economy that is forcing Beijing to make some difficult choices.

Chinese shoppers have said in surveys that they are spending less and downgrading their purchases. Business confidence is ebbing and investment in splashy infrastructure projects has dropped sharply.

The authorities are trying to navigate through numerous challenges, as the trade war fears have sparked a blistering selloff in domestic stock markets and a steep decline in the value of the yuan versus the dollar, heightening worries about the growth outlook.

The growth is below an expected 6.6 per cent rate, and slower than 6.7 per cent in the second quarter, the National Bureau of Statistics said on Friday.

It marked the weakest year-on-year quarterly gross domestic product growth since the first quarter of 2009 at the height of the global financial crisis.

After another big decline in Chinese stocks on Thursday, policymakers launched a coordinated attempt to soothe markets, with central bank governor saying equity valuations are not in line with economic fundamentals.