China’s third-quarter economic growth slowed to its weakest pace in 30 years as U.S. economic sanctions take their toll on the country.
China’s Gross Domestic Product (GDP) rose 6% year-on-year in the third quarter, marking a further loss of momentum for the economy from the second quarter’s 6.2% growth. The third quarter GDP growth was the slowest in China since the first quarter of 1992, the earliest quarterly data on record, and missed forecasts for 6.1% growth in a Reuters poll of analysts. It was also at the bottom end of the Chinese government’s full-year target range of 6%-6.5%.
Analysts and investors are closely watching the health of the world’s second-largest economy as the trade war with the United States stokes fears of a global recession. Asian stocks fell after the economic results were announced, reversing gains made on news that the United Kingdom and European Union had reached a Brexit deal.
The ongoing trade war with the U.S. has hit several sectors of China’s economy, with third quarter weakness seen in freight shipments, factory power generation, employment and entertainment spending. In September, factory gate prices fell at their fastest pace in three years.
