China's GDP Declines, Growth Slows Down To 4.9% In September Quarter

China's GDP: China's economy has suffered a major setback this quarter. The country's economic growth rate (China GDP growth rate) has been only 4.9 percent.

Representative Photo

New Delhi: China's economy suffered a significant setback in the third (September) quarter due to the new wave of Coronavirus and the decline in the supply chain. The country's economic growth rate in the July-September quarter was just 4.9 per cent.

On the other hand, the growth rate in the April-June quarter was 7.9 per cent. It may be noted that this is China's lowest growth rate since September 2020. 

China was one of the first countries to recover from the impact of the pandemic. China's economy grew rapidly in the first few months of the current fiscal, but it slowed down considerably due to the power crisis, a dwindling property market, and weak consumer demand. 

China is among the world's second largest economy. While the growth rate of China's economy in the September quarter is 4.9 per cent, the country's GDP stood at 18.3 per cent in the previous quarter. This information was received from the government data released on Monday. 

In addition, releasing the figures for the third quarter, National Bureau of Statistics spokesman Fu Linghui said that in the first three quarters of the current year, consumption contributed up to 64.8 per cent to China's economic growth rate. "The current uncertainties are increasing at the international level, and the revival of the domestic economy is still unstable and unbalanced," Fu said.

Production and sales weaken in third quarter
According to statistics, the total sales of consumer goods in the first three quarters have been 31,800 billion yuan, or $4,900 billion. Meanwhile, China's industrial output grew 11.8 per cent in the first three quarters. Investment in factory production, retail sales, construction, and other activities during the third quarter has weakened.

China employed millions of people in the construction sector. But the growth of this sector has slowed down considerably. Last year regulators tightened control over the sector after builders took on excessive debt as Evergrande, one of China's largest conglomerates, is struggling to pay billions of dollars to bondholders. 

In September, China's industrial output grew at the rate of 3.1 per cent annually. This figure is lower than expected. On the other hand, industrial output stood at 5.3 per cent in August. Retail sales also rose nearly 4.4 per cent, up from just 2.5 per cent in August.