China GDP: economic recovery stalls, growth slows to 4.9 per cent in third quarter

China’s economy grew by 4.9 per cent in the third quarter of 2021 compared with a year earlier, down from the 7.9 per cent growth seen in the second quarter

Retail sales and industrial production rose by 4.4 per cent and 3.1 per cent, respectively, in September from a year earlier

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China’s economy had staged an impressive recovery from the impact of the coronavirus, but is now faced with numerous headwinds including a property slump, energy crisis, weak consumer sentiment and soaring raw material costs. Photo: AFP

Published: 10:00am, 18 Oct 2021Updated: 11:26am, 18 Oct 2021

China’s economy grew by 4.9 per cent in the third quarter of 2021 compared with a year earlier, the National Bureau of Statistics (NBS) announced on Monday.

This was just below expectations in the median survey of Bloomberg analysts, which had predicted 5 per cent growth between July and September, and down from the second quarter growth rate of 7.9 per cent. It is the weakest pace since China’s economy grew by 4.9 per cent in the third quarter of 2020.

China’s economy had staged an impressive recovery from the impact of the coronavirus, but is now faced with numerous headwinds, including a property slump, energy crisis, weak consumer sentiment and soaring raw material costs.

Some analysts had said China’s third-quarter economic growth could drop to as low as 4.9 per cent, with others predicting growth as high as 5.2 per cent.

In the first three quarters of the year, China’s economy grew by 9.8 per cent, year on year.

Consumption contributed around 64.8 per cent to China’s economic growth in the first three quarters of the year, investment around 15.6 per cent and exports around 19.5 per cent, said NBS spokesman Fu Linghui.

We must note that the current uncertainties in the international environment are mounting and the domestic economic recovery is still unstable and uneven

Fu Linghui

“The overall national economy maintained the recovery momentum in the first three quarters … however, we must note that the current uncertainties in the international environment are mounting, and the domestic economic recovery is still unstable and uneven,” Fu said.

Last week, Premier Li Keqiang said China had “adequate tools” to tackle the economic challenges facing the country, including the nation’s current power crisis and high commodity prices.

China has set an economic growth target of “above 6 per cent” for 2021 after it grew by 2.3 per cent last year overall under the significant pressure from the coronavirus.