You are here: Home » PTI Stories » National » News
Business Standard

China's third-quarter growth falls to 6.6 per cent: poll

AFP  |  Beijing 

China's growth slipped to a seven-year low of 6.6 per cent in the third quarter, according to a survey, despite ample stimulus and a red-hot property market in the world's second-largest economy.

The median forecast for expansion in gross domestic product (GDP), based on a poll of 18 economists, represents an easing from the second quarter's 6.7 per cent.



It would be the slowest quarterly growth since the first three months of 2009, in the middle of the global financial crisis.

As the world's biggest trader in goods is crucial to the and its performance affects partners from to Zambia.

expanded 6.9 per cent in 2015 -- its weakest in a quarter of a century -- and the government has targeted growth in a range of 6.5-7.0 per cent for this year.

The AFP poll forecast will just meet the goal, with the median full-year prediction at 6.6 per cent.

"Our expectation is that growth will continue to slow. The largest headwind on the horizon is the housing sector, which peaked in April 2016 and thus is now in the correction phase of its cycle," Brian Jackson of IHS told AFP.

Beijing is trying to execute a difficult structural transition away from dependence on low-end exports and heavy industry toward consumption and services, but entrenched interests have slowed progress.

At the same time, authorities have sought to combat a slowdown through hefty fiscal stimulus and loose home-buying policies that have fuelled property market booms in urban areas.

"Economic growth in the third quarter was better than market expectations," Rong Jing, a Beijing-based analyst with BNP Paribas, told AFP, but pointed to possible risks arising from the real-estate boom.

"The property bubble risk will continue to balloon if the government does not take tightening measures, as it would cause a very negative impact on the economy and the financial system," she added.

"The biggest restraint this year that prevents monetary easing is the real estate market."

In recent weeks lawmakers have unveiled tighter home-buying regulations in major cities to cool down galloping property prices.

Recent indicators have painted a mixed picture of China's economic health.

An official measure of manufacturing activity maintained its strongest level in nearly two years in September while auto sales grew at their fastest rate in three years in the world's biggest car market.

Data Friday showed that the price of goods at the factory gate rose in for the first time in more than four years in September, a positive sign for demand after years of dropping prices battered manufacturers and put a damper on growth.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

China's third-quarter growth falls to 6.6 per cent: poll

China's growth slipped to a seven-year low of 6.6 per cent in the third quarter, according to a survey, despite ample stimulus and a red-hot property market in the world's second-largest economy. The median forecast for expansion in gross domestic product (GDP), based on a poll of 18 economists, represents an easing from the second quarter's 6.7 per cent. It would be the slowest quarterly growth since the first three months of 2009, in the middle of the global financial crisis. As the world's biggest trader in goods China is crucial to the global economy and its performance affects partners from Australia to Zambia. GDP expanded 6.9 per cent in 2015 -- its weakest in a quarter of a century -- and the government has targeted growth in a range of 6.5-7.0 per cent for this year. The AFP poll forecast China will just meet the goal, with the median full-year prediction at 6.6 per cent. "Our expectation is that growth will continue to slow. The largest headwind on the horizon is the ... China's growth slipped to a seven-year low of 6.6 per cent in the third quarter, according to a survey, despite ample stimulus and a red-hot property market in the world's second-largest economy.

The median forecast for expansion in gross domestic product (GDP), based on a poll of 18 economists, represents an easing from the second quarter's 6.7 per cent.

It would be the slowest quarterly growth since the first three months of 2009, in the middle of the global financial crisis.

As the world's biggest trader in goods is crucial to the and its performance affects partners from to Zambia.

expanded 6.9 per cent in 2015 -- its weakest in a quarter of a century -- and the government has targeted growth in a range of 6.5-7.0 per cent for this year.

The AFP poll forecast will just meet the goal, with the median full-year prediction at 6.6 per cent.

"Our expectation is that growth will continue to slow. The largest headwind on the horizon is the housing sector, which peaked in April 2016 and thus is now in the correction phase of its cycle," Brian Jackson of IHS told AFP.

Beijing is trying to execute a difficult structural transition away from dependence on low-end exports and heavy industry toward consumption and services, but entrenched interests have slowed progress.

At the same time, authorities have sought to combat a slowdown through hefty fiscal stimulus and loose home-buying policies that have fuelled property market booms in urban areas.

"Economic growth in the third quarter was better than market expectations," Rong Jing, a Beijing-based analyst with BNP Paribas, told AFP, but pointed to possible risks arising from the real-estate boom.

"The property bubble risk will continue to balloon if the government does not take tightening measures, as it would cause a very negative impact on the economy and the financial system," she added.

"The biggest restraint this year that prevents monetary easing is the real estate market."

In recent weeks lawmakers have unveiled tighter home-buying regulations in major cities to cool down galloping property prices.

Recent indicators have painted a mixed picture of China's economic health.

An official measure of manufacturing activity maintained its strongest level in nearly two years in September while auto sales grew at their fastest rate in three years in the world's biggest car market.

Data Friday showed that the price of goods at the factory gate rose in for the first time in more than four years in September, a positive sign for demand after years of dropping prices battered manufacturers and put a damper on growth.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

China's third-quarter growth falls to 6.6 per cent: poll

China's growth slipped to a seven-year low of 6.6 per cent in the third quarter, according to a survey, despite ample stimulus and a red-hot property market in the world's second-largest economy.

The median forecast for expansion in gross domestic product (GDP), based on a poll of 18 economists, represents an easing from the second quarter's 6.7 per cent.

It would be the slowest quarterly growth since the first three months of 2009, in the middle of the global financial crisis.

As the world's biggest trader in goods is crucial to the and its performance affects partners from to Zambia.

expanded 6.9 per cent in 2015 -- its weakest in a quarter of a century -- and the government has targeted growth in a range of 6.5-7.0 per cent for this year.

The AFP poll forecast will just meet the goal, with the median full-year prediction at 6.6 per cent.

"Our expectation is that growth will continue to slow. The largest headwind on the horizon is the housing sector, which peaked in April 2016 and thus is now in the correction phase of its cycle," Brian Jackson of IHS told AFP.

Beijing is trying to execute a difficult structural transition away from dependence on low-end exports and heavy industry toward consumption and services, but entrenched interests have slowed progress.

At the same time, authorities have sought to combat a slowdown through hefty fiscal stimulus and loose home-buying policies that have fuelled property market booms in urban areas.

"Economic growth in the third quarter was better than market expectations," Rong Jing, a Beijing-based analyst with BNP Paribas, told AFP, but pointed to possible risks arising from the real-estate boom.

"The property bubble risk will continue to balloon if the government does not take tightening measures, as it would cause a very negative impact on the economy and the financial system," she added.

"The biggest restraint this year that prevents monetary easing is the real estate market."

In recent weeks lawmakers have unveiled tighter home-buying regulations in major cities to cool down galloping property prices.

Recent indicators have painted a mixed picture of China's economic health.

An official measure of manufacturing activity maintained its strongest level in nearly two years in September while auto sales grew at their fastest rate in three years in the world's biggest car market.

Data Friday showed that the price of goods at the factory gate rose in for the first time in more than four years in September, a positive sign for demand after years of dropping prices battered manufacturers and put a damper on growth.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard