China’s economic growth hit 6% in Q3, the slowest growth in at least 26 years, amid broad declines that seemed to presage the need for more intervention to arrest the declines.
That’s down from 6.2% growth in Q2 and a tax-cut-aided 6.4% in Q1. Analysts were generally expecting at least 6.1% for Q3.
The end of the quarter saw some recovery in industrial production and retail sales, according to China’s statistics bureau, but investment in fixed assets was on the decline and investment in agriculture, manufacturing and industrial sectors fell off in September.
The growth is the lowest since the current measure of GDP was adopted in 1992, just three years after the Tiananmen Square crackdown significantly hurt investment.
“We expect monetary policy to be loosened before long in response, but it will take time for this to put a floor beneath economic growth,” says Capital Economics’ Julian Evans-Pritchard.
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