China’s economic growth showed a weaker than forecast ease to a three-decade low in the third quarter on slowdown in investment, GDP figures released on Friday signaled.
Annual economic growth in the July-September quarter slowed to 6 percent, the slowest pace since the early 1990s, compared to 6.2 percent expansion in the second quarter. Expectations were in favor of 6.1 percent growth.
Investment growth reached 5.4 percent in the first nine months of this year, while its contribution to GDP slowed to 19.8 percent from 25.9 percent.
However, both industrial production and retail sales accelerated in the first nine months to 5.8 percent vs. 4.4 percent and 7.8 percent vs. 7.5 percent respectively.
Despite the slowdown in growth, China’s economy is still capable of hitting the government’s target for 2019 of 6 percent to 6.5 percent. That means that the People’s Bank of China would be in no hurry to ease monetary policy to stimulate the economy.
The offshore yuan was 0.03 percent down at 7.0836 per dollar,
while the Shanghai Composite Index closed 1.32 percent lower at 2,938.14.