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Home / Business / China's economic growth is sinking to a 26-year low

China's economic growth is sinking to a 26-year low



China's economy suffered another blow in the last quarter as the US customs war took its toll.

China's economy slowed to a 26-year low The world's second-largest economy grew 6 percent in the three months to September, after 6.2 percent in the previous quarter, according to Friday's data.

An impressive number for most countries, but not for China.

This was the lowest rate since the beginning of quarterly reporting in China in 1

993.

US Growth in the second quarter was 2.1 percent.

The slump increases pressure on Chinese leaders to avert politically dangerous job losses as they wage a wage war with President Trump over Beijing's trade surplus and technological ambitions.

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The slowdown in China, the world's largest retailer, has a global impact. It is pushing down demand for industrial components from Asian countries and prices for soybeans, iron ore and other commodities and is hitting Brazil, Australia and other suppliers.

The International Monetary Fund has cited the US-Chinese customs war as a factor in this week's decision Trump agreed last week to postpone a tariff increase on Chinese goods and pledged up to $ 50 billion of US agricultural produce to buy. According to official figures, the two sides are still working on details.

Beijing still has to confirm the extent of potential purchases of US goods. It is unclear whether the Chinese leaders want to take any further steps, including a possible lifting of the punitive tariffs that were introduced before the purchase.

An even greater impact on China's growth appears to be due to the slowdown in domestic activity, including consumer spending and investment.

Retail sales Growth in the first three quarters of 2019 fell from 8.4 percent in the previous year to 8.2 percent.

China's exports to the United States, the largest foreign market, declined 21.9 percent in September from a year ago. This helped to reduce Chinese total exports by 1.4 percent. Imports of American goods fell by 15.7 percent.

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Recent economic growth has been the lowest since the beginning of quarterly reporting in China in 1993. Annual growth fell to 3.9 percent in 1990 but recovered to 9.3 percent the following year.

The Associated Press contributed to this article.


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