A Chinese flag can be seen on April 9, 2018 in Shanghai in front of containers in the deepwater port of Yangshan.
Johannes Eisele | AFP | Getty Images
China released third-quarter GDP figures Friday, showing that the economy has grown 6.0% year-on-year, its lowest level for at least 27 1/2 years, Reuters said.
Analysts surveyed by Reuters had expected China's GDP to grow by 6.1% year-on-year in the third quarter.
In the second quarter of 201
China's GDP has plunged sharply since the first quarter of 2018 when it rose 6.8% on credit and commercial disputes with the US, said Vishnu Varathan, director of the Department of Economy and Strategy Department of the Treasury Department for Asia and Oceania at the Mizuho Bank. 19659002] "There is no doubt that the downturn is severe," added Varathan in a message sent on Monday before the dates.
Beijing's official growth target for 2019 remains at 6% to 6.5% to slow down over the next two quarters, said Bo Zhuang, chief China economist at TS Lombard.
Zhuang told CNBC's "Street Signs" that real manufacturing output growth in the service sector has slowed dramatically in recent months.
Zhuang expects China's growth to slow to 5.8% in the fourth quarter "Given the trade talks and the conflict with the US, Chinese authorities are accepting lower growth rates," said Zhuang. GDP figures are an indicator of health status the second largest economy in the world. Many external experts have long been skeptical about the accuracy of Chinese reports.
The latest data from China were not optimistic.
China's import and export data for September were worse than expected due to the country's trade disruption with the US.
The two economic giants have been involved in a trade dispute for more than a year, with each country applying billions of dollars in tariffs.
The last round of trade talks between the world's two largest economies ended late last week in Washington, DC. After the meeting, the US said they would suspend a tariff increase on Chinese goods that was supposed to be in effect this Tuesday.
US President Donald Trump said China has agreed to a "very substantial Phase 1 deal" to be completed in the next three weeks. Trump also said the deal would solve the problem of intellectual property and financial services as well as Chinese purchases of agricultural products worth about $ 40 billion to $ 50 billion.
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