Fraser Hammond - China's Economic Expansion Declines

TAIPEI CITY, Taiwan, October 22, 2018 (Newswire.com) - According to recently released official data, economic growth in the world’s second-largest economy declined by more than anticipated in the period from July to September this year. Fraser Hammond analysts say China’s GDP growth slowed to 6.5 percent on a yearly basis in the third quarter, reaching its lowest point since the financial crisis almost a decade ago.

Fraser Hammond analysts believe the weaker economic growth could be a result of the ongoing trade dispute between the US and China.

In the third quarter, China’s economy missed the forecasted growth rate of 6.6 percent and came in at less than the 6.7 percent growth reported in the second quarter of this year.

According to data released by the National Bureau of Statistics, China’s economy expanded by 1.6 percent on a quarterly basis and, in spite of missing the forecasted GDP growth, China’s stock markets recovered from early losses.

Fraser Hammond analysts say the decline in China’s economic growth is unsurprising given the escalating trade battle with the US.

While China’s GDP figures are closely monitored to assess the health of the world’s second-largest economy, many external experts have shown skepticism towards the accuracy of China’s reports.

However, in light of China’s trade spat with the US, Fraser Hammond analysts are paying close attention to any indications that the tariffs imposed by the US on China’s exports are having an adverse effect on the economy.

Fraser Hammond analysts say China’s economy appears to be unsteady at this point and that there is growing concern over China’s economic and financial market outlook.

Source: Fraser Hammond