Beijing: China’s economy It slowed further in November, dragged down by a deteriorating property market slowdown and repeated disruptions from the Covid outbreak.
Growth in real estate investment slowed to 5.2% in the first eleven months of the year. Property investments grew 6% in the same period, slowing from 7.2% during the January-October period, as financing rules remained tighter and home sales fell.
Industrial output grew 3.8% from a year earlier, up from 3.5% in October and higher than the 3.7% projected by economists. Retail sales growth weakened to 3.9%, missing economists’ 4.7% profit forecasts. Sales in the restaurant and catering sector fell 2.7% as people stayed home amid the renewed virus outbreak.
The data highlights the downward pressure on the economy from the real estate sector and the scale of the challenge facing the Chinese government in stabilizing the world’s second-largest economy. While Beijing expected more loans to be available and indicated some easing of controls on the property market to support “stability”, officials last week maintained the original stance that “homes are for stays”, leading to speculation. No.”
The slowdown in the economy has prompted Beijing to focus on stabilizing growth, with the central bank easing monetary policy and Communist Party Ordering more fiscal spending in 2022.
Earlier on Wednesday, the central bank kept the interest rate unchanged for one-year loans to banks and only about half of the matured loans plummeted, drawing liquidity out of the economy. However, the recently announced cut in reserve requirement ratio for banks has come into effect from Wednesday, which will increase the amount of funds with financial institutions to lend.
“The international environment is becoming increasingly complex and grim and there are still many obstacles to domestic economic recovery,” the National Bureau of Statistics said in a statement. We must combine “cross-cyclical and counter-cyclical macro policy adjustments to stabilize the overall macro economy.”
Infrastructure investment, another weak link in China’s slow recovery this year, grew at a slower pace of 0.5%. Local governments have stepped up efforts to borrow money and launch new projects, and Beijing has allowed officials to start selling next year’s bonds from January 1 to accelerate spending.
Consumption weakened despite support from still strong sales around the “Singles Day” shopping festival, which did not help offset the impact of the COVID-19 outbreak on services consumption, restaurant and catering sales and shopping at physical stores .
The unemployment rate rose to 5% in the survey, while the average number of hours worked per week fell to 47.8 from a record 48.6 in October. The unemployment rate for people aged 16-24 rose slightly from 14.2% to 14.3%.
“Domestic consumption remains weak with retail sales disappointing,” said raymond yung, chief economist for Greater China Australia and New Zealand Banking Group Ltd. “The growth in employment rate is concerning. The authorities should pledge more support and give a strong signal to the market.”
Growth in real estate investment slowed to 5.2% in the first eleven months of the year. Property investments grew 6% in the same period, slowing from 7.2% during the January-October period, as financing rules remained tighter and home sales fell.
Industrial output grew 3.8% from a year earlier, up from 3.5% in October and higher than the 3.7% projected by economists. Retail sales growth weakened to 3.9%, missing economists’ 4.7% profit forecasts. Sales in the restaurant and catering sector fell 2.7% as people stayed home amid the renewed virus outbreak.
The data highlights the downward pressure on the economy from the real estate sector and the scale of the challenge facing the Chinese government in stabilizing the world’s second-largest economy. While Beijing expected more loans to be available and indicated some easing of controls on the property market to support “stability”, officials last week maintained the original stance that “homes are for stays”, leading to speculation. No.”
The slowdown in the economy has prompted Beijing to focus on stabilizing growth, with the central bank easing monetary policy and Communist Party Ordering more fiscal spending in 2022.
Earlier on Wednesday, the central bank kept the interest rate unchanged for one-year loans to banks and only about half of the matured loans plummeted, drawing liquidity out of the economy. However, the recently announced cut in reserve requirement ratio for banks has come into effect from Wednesday, which will increase the amount of funds with financial institutions to lend.
“The international environment is becoming increasingly complex and grim and there are still many obstacles to domestic economic recovery,” the National Bureau of Statistics said in a statement. We must combine “cross-cyclical and counter-cyclical macro policy adjustments to stabilize the overall macro economy.”
Infrastructure investment, another weak link in China’s slow recovery this year, grew at a slower pace of 0.5%. Local governments have stepped up efforts to borrow money and launch new projects, and Beijing has allowed officials to start selling next year’s bonds from January 1 to accelerate spending.
Consumption weakened despite support from still strong sales around the “Singles Day” shopping festival, which did not help offset the impact of the COVID-19 outbreak on services consumption, restaurant and catering sales and shopping at physical stores .
The unemployment rate rose to 5% in the survey, while the average number of hours worked per week fell to 47.8 from a record 48.6 in October. The unemployment rate for people aged 16-24 rose slightly from 14.2% to 14.3%.
“Domestic consumption remains weak with retail sales disappointing,” said raymond yung, chief economist for Greater China Australia and New Zealand Banking Group Ltd. “The growth in employment rate is concerning. The authorities should pledge more support and give a strong signal to the market.”
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