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AlwaysFree: China’s Economy Risks Deeper-Than-Expected Slowdown: Analysts

Author: SSESSMENTS

China’s economy risks slowing faster than investors anticipated, analysts warned, as Beijing proceeded with a push to cut dependence on real estate and regulate industries from education to technology when manufacturers grappled with a power shortage and the COVID-19 pandemic. Economists at Bank of America and Citigroup said China’s GDP could grow slower in 2021 than a consensus of 8.2%. They warned that the slowdown could extend into next year, capping growth at below 5%.

In recent years, China loaded up on debt to become the world’s second-largest economy. However, President Xi Jinping is determined to shift China’s economic model, including by stabilising debt growth to ease financial risks. Beijing is also keen to channel financial resources into high-tech industries to counter the threat of US technology restrictions.

China’s economy slowed down sharply to 4.9% in the third quarter from 7.9% in the previous quarter. Severe power shortages are expected to cap growth further in the fourth quarter. In March, Premier Li Keqiang announced a conservative growth target of “above 6%,” indicating that Beijing would focus on other goals such as environmental protection and financial stability.

Tags: All Products,AlwaysFree,Asia Pacific,China,English,NEA

Published on October 25, 2021 11:26 AM (GMT+8)
Last Updated on October 25, 2021 11:26 AM (GMT+8)