Economic growth of China dips to 27-years low
The Chinese economy is starting to show signs of vulnerability from its trade war against the United States as it posted its slowest economic growth in 27 years.
The gross domestic product (GDP) of China amassed 6% in the third quarter, notably the lowest growth rate since 1992, and lower from the 6.2% in the second quarter, the government statistics revealed on Friday.
The actual rate also did not meet the target or forecasted rate of 6.1% of analysts.
“Trade tension with the U.S. is the key factor weighing on business sentiment and investment activities, although domestic stimulus policies are providing some buffer from the downside,” Chaoping Zhu, strategist for JP Morgan Asset Management said.
The shock came days after a significant development between the two conflicting countries in which the first phase of the trade deal text is being finalized.
“Ongoing negotiations may have some positive impact on business sentiments, but despite the potential mini deal, most of the U.S. tariffs on imports from China still remain, hurting Chinese exports, Zhu added.