China's economy weakens as GDP in Q3 slows sharply to 4.9%

China is bearing the brunt of power shortages, supply gridlocks and scattered Covid-19 outbreaks as the world's second largest economy grew at the slowest pace in a year in its third quarter that ended in September 2021. 

As per data released on Monday (October 18), China's GDP slowed down from 7.9% in the second quarter to 4.9% in the third, the slowest since the third quarter of 2020. The country's GDP stood at 18.3% in the first quarter.

Fu Linghui, National Bureau of Statistics (NBS) spokesman noted that the existing international environment uncertainties are increasing. He added, "The domestic economic recovery is still unstable and uneven."

Economic experts suggest that one of the contributing factors of China's growth being dragged down is the slowdown in the real estate sector, which was amplified by the spillover from property giant Evergande's close to $300 billion debts. 

Experts added that apart from that the recent electricity outages, production cuts as a result of climate and safety targets implemented by local authorities, has contributed to the country's slow growth. This has also slowed down industrial output, experts add.

Earlier this week, Chinese Premier Li Keqiang expressed confidence that the nation has enough tools to cope with these economic challenges and the government will achieve its annual development goals.