The Chinese economy grew by 6 percent in the third quarter compared to the same period last year. That is the slowest growth in almost thirty years, according to government data published on Friday.
In the second quarter there was a growth of 6.2 percent. Economists generally expected that the growth of the second largest economy in the world would slow down to 6.1 percent. China is severely affected by the trade dispute with the United States. Earlier this week, disappointing trade figures from China came out. Chinese exports are shrinking as a result of continuing trade tensions, while imports are also weakening. Production in the factories is weak and consumer spending is also disappointing, indicating a less strong domestic demand.
Easing of capital requirements
The Chinese government is aiming for economic growth for the entire year in a bandwidth of 6 percent to 6.5 percent. To stimulate growth, Beijing has taken various measures including easing capital requirements for banks in order to boost lending in the country.
The Chinese statistics office also provided other macroeconomic data. For example, Chinese retail sales increased by 7.8 percent on an annual basis in September, which is slightly stronger than one month previously. Furthermore, production in the large Chinese industry increased by 5.8 percent last month. That is a larger increase than in August and stronger than expected.
China and the US recently concluded a provisional agreement on a partial trade deal. The deal is intended to be formally signed at a meeting of US President Donald Trump with his Chinese counterpart Xi Jinping at an economic forum in Chile next month.