BEIJING (Reuters) – China’s economy grew by just 4.58 per cent in the July-September quarter, the slowest in a year, raising doubts about whether the country will achieve its current forecast of 5 per cent growth in the current fiscal year.
China is the second largest economy in the world.
Its economic growth in the last quarter was recorded at 4.58 percent, the lowest in a year, according to the country’s National Statistics Organization.
While China is expecting a growth of 5 percent in the current financial year, its second quarter growth will be 4.70 percent, the country’s economists had predicted.
Unyielding construction sector
China’s construction industry suffered its biggest decline in nine years in September. A senior Chinese government official said that despite various efforts to boost growth in the construction sector, it has not yielded results for 16 months. House prices in 70 major cities fell by 6.10 percent; This is the biggest decline since May 2015, he said. The construction sector saw a half-percent drop in September alone. Old house prices also fell by 1.20 percent.
Moreover, the Chinese government had also announced incentive schemes for various sectors to increase GDP growth.
India is growing
After Corona, China has to fight hard to boost economic growth. But in India, the world’s fifth-largest economy, the July-September second-quarter growth was 6.70 percent. Leading international banks and financial institutions have predicted that India’s growth in the current financial year will be 7.20.
However, the failure of the Chinese economy to achieve the planned growth target has created a crisis for the country’s government. The government is forced to provide more incentives to many sectors, including the construction sector, which has suffered a steep decline.
