China’s economy saw its slowest rate of growth in a year in the third quarter of this year, hampered by power shortages, supply chain bottlenecks, and huge wobbles in the housing market, putting pressure on officials to do more to strengthen the faltering recovery.
Data released on Monday revealed that gross domestic product (GDP) rose 4.9 percent year on year in July to September, the worst pace since the third quarter of 2020.
The China Evergrande Group debt crisis, continued supply chain delays, and a serious electricity shortage have all hit the world’s second-largest economy, sending industry output to its lowest level since early 2020, when stringent COVID-19 regulations were imposed.
At a press conference in Beijing on Monday, National Bureau of Statistics (NBS) spokesperson Fu Linghui remarked that the domestic economic recovery was still fragile and unequal.
The yuan and most Asian stock markets fell as a result of the disappointing figures, which fueled investor concerns about the global economy’s revival.
Fearing that a persistent housing bubble will jeopardise the country’s long-term rise, Chinese policymakers are likely to retain harsh restrictions on the industry even as the economy slows, though they may modify some approaches as needed, according to policy sources and analysts.
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