BEIJING: China’s economy grew at 6.5 per cent in the third quarter, posting slowest growth in nine years, amid intensifying trade war with the US and the mounting local government’s debt which rose to USD 2.58 trillion.
The GDP expanded by 6.5 per cent in the July-to-September period year-on-year, according to official GDP figures released by China’s National Bureau of Statistics (NBS). It’s down from 6.8 per cent and 6.7 per cent in the first and second quarters, respectively.
The world’s second largest economy’s third quarter growth was the weakest year-on-year expansion since 2009 global financial crisis.
The latest figures came as China faced rising economic challenges including high debt levels and an intensifying tariff battle with Washington.
US President Donald Trump imposed additional tariffs on USD 250 billion worth of Chinese exports to force Beijing to cut about USD 375 billion bilateral trade deficit.
Besides the trade war China’s spiraling local government debt remained a major concern of its slowing down economy as it has risen to USD 2.58 trillion according to recent figures released by the Ministry of Finance here.
A BBC report on the state of China’s economy said that Beijing was not expecting to fight a trade war at a time when it was trying to manage systemic risks in the economy.
They don’t have a lot of options on the table. The country is saddled with extraordinary levels of debt so policymakers are reluctant to take measures to stimulate the economy the way they did after 2008, the report quoted observers as saying.
As the GDP figures pointing to further slowdown of the economy were released, top government officials stepped in to reassure the Chinese public about the state of economy amid the worst stock market performance. PTI
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