China's economy grows only slowly
The upturn in the Chinese economy lost considerable momentum in the third quarter. According to the Beijing statistics office, the world's second-largest economy grew by 4.9 percent year-on-year in the third quarter. It is the weakest reading so far this year, following record growth of 18.3 percent in the first quarter and 7.9 percent in the second. In the period from January to September, growth thus totaled 9.8 percent.
After overcoming the Corona pandemic, China's economy initially staged a strong recovery. Recently, however, economists have warned of a whole series of negative factors that could have a negative impact on the Chinese economy and thus also on the business of German companies in the country. One risk cited was the energy shortage in the country, which has already forced industrial companies to cut back production in recent weeks.
European companies operating in China are also increasingly suffering from rationing and the plant shutdowns ordered as a result. The problems are likely to intensify with the upcoming winter heating season and last "at least until March," warned Jörg Wuttke, chairman of the EU Chamber of Commerce in China. "We are in a marathon, not a sprint." EU companies complained of "chaotic conditions." They are often informed at short notice that the power will be cut off - for example, the night before or even an hour before the start of a shift.
Analysts are also concerned about the crisis surrounding the highly indebted Chinese real estate group Evergrande, which is weighing on the Chinese financial and real estate market. In addition, the government enforced stricter rules and bans on Internet companies and numerous other industries this year, which further worsened the mood in the economy.
Other economic data presented on Monday were mixed. Industrial production, a measure of activity in the manufacturing sector, rose 3.1 percent in September from a year earlier. That compares with growth of 5.3 percent in August. Retail sales rose 4.4 percent, following a 2.5 percent year-on-year increase in August.
