China's economy faces three battles and has to struggle to find new dr

China's economic growth rate inSLOTXOthe third quarter, which the National Statistical Office announced last week. The growth was disappointing at only 4.9%, lower than the market forecast. While the second quarter grew as much as 7.9%, which Fu Linghui, spokesman for the National Bureau of Statistics of China. He acknowledged that the challenges that prevent the Chinese economy from running smoothly is increasing. Economic recovery after the COVID-19 pandemic It's still not stable and unequal.

The sharp decline in growth in the third quarter was caused by three main problems at the same time: power shortage The problem of delays in shipping and problems in the real estate sector when giant companies started from China Evergrande default

Iris Pang, chief economist at ING Group, said China's manufacturing sector was severely hit by supply chain disruptions. Operations in some ports have been affected by Chinese government's COVID-19 control measures, while energy shortages have exacerbated the situation.

Larry Hu, chief economist at Macquarie Group, said the slowdown in manufacturing was evident. They are energy-intensive groups such as steel and cement. A spokesman for the National Statistical Office said it would only be a problem for a while. The impact on the economy is under control.

Lewis Kuij, chief economist at Oxford Economics, agrees that The power shortage, affecting production, will ease in the fourth quarter. It is believed that senior policymakers in China will begin to focus on GDP growth. China is therefore expected to be flexible about the timing of its carbon emissions targets. which was originally scheduled to be achieved by 2060.

Previously, the use of fossil fuels was higher since the beginning of the year. After the economy recovers from Covid-19 As a result, the Chinese government has tightened its energy consumption in hopes of achieving its goal of reducing carbon emissions. leading to power outages in some areas or sometimes need to allocate electricity usage causing various factories to reduce their production capacity

In the real estate sector Analysts believe it will be a long-term problem. If Evergrande goes bankrupt will scare investors and if other real estate companies have a tendency to default on payment It will have a major impact on the economy and financial stability. Because real estate and related industries account for about 30% of China's GDP, this issue could become a major issue to be watched in the coming year. And it could be the biggest obstacle to China's economic growth next year.