For What It’s Worth, China’s GDP Growth Is Slowing

Published 18/10/2019, 10:32

China’s GDP growth slowed to 6.0% YoY in Q3, below the consensus estimate of 6.1%. This lower-than-expected figure is largely explained by weak investment. As is commonly known, the official GDP data should be taken with a grain of salt. China’s GDP growth is notoriously stable – something that is seldom, if ever, seen in other economies.

The fact that the economy is slowing is no surprise, either. While the trade dispute with the US makes a nice story for why growth is slowing, many other factors are at work as well. They include demographics, China’s shift from an investor-led to a consumer-led economy, and a massive amount of corporate debt. Other more reliable growth factors, like housing and property prices, also point to lower growth, but not to an immediate collapse.

China GDP Growth

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