China slowdown spells downside risk for global economy

CHINA, the engine for global growth, has reported a slower 4.9 per cent growth for the third quarter as it battles an unstable domestic recovery haunted by recurring Covid-19 outbreaks, power outages and a real estate albatross; all of which spells downside risks for the world's economy, including Singapore which counts the mainland as a major trade partner.

On Monday, Fu Linghui, spokesperson for the National Bureau of Statistics, said at a press conference that domestic and overseas risks and challenges have increased in the third quarter. China's Q3 gross domestic product (GDP) rose 4.9 per cent on year, marginally below the consensus estimate of a 5.0 to 5.2 per cent growth. However, it was sharply weaker than the 7.9 per cent growth in Q2 and the blistering 18.3 per cent surge clocked in Q1.

Industrial output, the mainstay of China's growth, was hard hit, decelerating for seven straight months to 3.1 per cent in September, posting its worst performance since the early days of the pandemic. Computers, chemicals and ferrous metals smelting showed meaningful slowdowns in year-on-year growth.