Energy Shortages and Evergrande Slow Chinese Economy Growth
The growth of the Chinese economy fell sharply in the third quarter. This is partly due to energy shortages, which caused factories to partially shut down last month, and problems in the real estate market.
The Chinese government applies stricter rules there so that less is built. In addition, the impending collapse of real estate giant Evergrande is also hindering faster economic growth.
The growth last quarter amounted to just under 5 percent compared to a year earlier, reports the Chinese statistical office. However, in the second quarter of this year, growth was still almost 8 percent. In addition to the limited working factories and the turmoil in the real estate market, the Chinese economy also suffered last quarter from the sometimes strict corona restrictions introduced locally after virus outbreaks. As a result, consumers are still less likely to spend their money.
Economists had already anticipated lower growth for the past quarter. However, the Chinese economy saw another rebound in the third quarter of last year, which compares the results of the past three months after the loosening of strict lockdowns in the country.
Still, the figures published today have generally failed to meet economists’ expectations. Many connoisseurs, therefore, have to adjust their forecast downwards for the rest of the year. As a result, according to the Chinese central bank, the moment of growth has been “slightly dampened”.
The bank is still forecasting growth of about 8 percent for the full year, exceeding the government’s target of more than 6 percent. Last week, Prime Minister Li Keqiang said that he was confident he could achieve that goal, despite “economic growth that has levelled off due to several factors”.