China: Growth cools to a one-year low in the third quarter

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Container port in Lianyungang, China

Photo: via www.imago-images.de / imago images / VCG

Record growth after the pandemic appears to have ended in China for the time being.

The upswing in the Chinese economy slowed significantly in the third quarter.

As the Beijing statistics office announced on Monday, the second largest economy only grew by 4.9 percent year-on-year.

Experts had expected a slightly stronger increase.

After a record increase of 18.3 percent in the first and 7.9 percent in the second quarter, it is the weakest value so far this year.

In the period from January to September, the total growth was 9.8 percent.

After having overcome the corona pandemic, China's economy initially showed a strong recovery.

Most recently, however, analysts and economists warned of a whole range of negative factors that could have a negative impact on the Chinese economy and thus also on the business of local German companies.

Problems with local European companies

The energy shortage in the country, which has already forced industrial companies to cut back on their production in the past few weeks, was named as a risk.

European companies operating in China are also increasingly suffering from rationing and the consequent shutdowns of businesses.

The problems are likely to worsen with the upcoming winter heating season and will last "at least until March", warned the chairman of the EU Chamber of Commerce in China, Jörg Wuttke.

“We're in a marathon, not a sprint.” EU companies complained about “chaotic conditions”.

Often they are only informed at short notice, such as the evening before, or sometimes an hour before the start of the shift, that the electricity will be switched off.

Real estate company continues to worry

Analysts were also concerned about the crisis surrounding the heavily indebted Chinese real estate company Evergrande, which is weighing on the Chinese financial and real estate market.

In addition, this year the government enforced stricter rules and bans in Internet companies and numerous other industries, which also caused a poorer mood in the economy.

Other economic data presented on Monday were also mixed.

Industrial production, a measure of activity in the manufacturing sector, increased by 3.1 percent in September year-on-year.

Experts had forecast an increase of 4.5 percent.

In August, growth was still 5.3 percent.

Retail sales rose 4.4 percent after increasing 2.5 percent year over year in August.

jok / Reuters / dpa