China’s GDP growth pummelled to near 30-year low as tariff rows hit output



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China’s GDP growth pummelled to near 30-year low as tariff rows hit output

On Friday, the 18th of October 2019, adding further strains in to China’s recessed economy, Chinese Commerce Ministry had revealed another major blow to the second-largest economy of the world, as the Central Asian nation’s GDP (Gross Domestic Product) slew more-than-anticipated and grew at its weakest pace in more than three decades, as a tormenting trade war with the United States had curbed out factory production, building a strong case for fresh monetary injection to revive the trade-war-struck country’s economy.

In point of fact, data released by China’s Commerce Ministry earlier on Friday (October 18th), GMT. 08.00, had displayed another set of downbeat economic data, while the nation’s GDP grew by only 6.0 per cent on a year-on-year basis and from a 6.2 per cent a quarter earlier, missing an analysts’ estimate of 6.1 per cent.

Meanwhile, amid a basket of China data which pulled down a majority of Asian shares on Friday (October 18th) over frets of further escalation of the recession in its factory activity, industrial production had been a bright spot for the Chinese economy last month, as China’s industrial production rose by 5.8 per cent last month from an earlier 4.4 per cent in August, meanwhile, real estate investment remained unchanged to 10.5 per cent.

On top of that, a surprise upsurge of 8.2 per cent in retail sales ahead of holiday seasons amid US tariff hike suggested a well-fed domestic economy, most of which had been injected through long-term low-cost debts to small- and medium-scale companies, while projecting further perils breathing fire over Chinese economy, a Shanghai-based economist at Hwabao Trust, Nie Wen said earlier on Friday (October 18th), “Given exports are unlikely to stage a comeback and a possible slowdown in the property sector, the downward pressure on China’s economy is likely to continue, with fourth-quarter economic growth expected to slip to 5.9%. Authorities will loosen policies, but in a more restrained way. ”