Home Global China China’s Economy Continues to Slow, Rattled by Real Estate and Energy: NYT

China’s Economy Continues to Slow, Rattled by Real Estate and Energy: NYT

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China’s Economy Continues to Slow, Rattled by Real Estate and Energy: NYT
A China Evergrande housing complex in Zhumadian, a city in Henan Province, in September. Problems in real estate pose a major threat to the Chinese economy.Credit...Jade Gao/Agence France-Presse — Getty Images. Courtesy of The New York Times.

BEIJING — Steel mills have faced power cuts. Computer chip shortages have slowed car production. Troubled property companies have purchased less construction material. Floods have disrupted business in north-central China.

It has all taken a toll on China’s economy, an essential engine for global growth.

The National Bureau of Statistics announced on Monday that China’s economy increased by 4.9 percent in the third quarter, compared to the same period last year; the period was markedly slower than the 7.9 percent increase the country notched in the previous quarter. Industrial output, the mainstay of China’s growth, faltered badly, especially in September, posting its worst performance since the early days of the pandemic.

Two bright spots prevented the economy from stalling. Exports remained strong. And families, particularly prosperous ones, resumed spending money on restaurant meals and other services in September, as China succeeded once again in quelling small outbreaks of the coronavirus. Retail sales were up 4.4 percent in September from a year ago.

Chinese officials are showing signs of concern, although they have refrained so far from unleashing a big economic stimulus.

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