China’s economy slowed in the last quarter as weak consumer demand dragged on growth

BANGKOK (AP) — China’s economy expanded at a slower-than-forecast 4.7% annual rate in the last quarter, the government reported Monday, while emphasizing signs of improvement in factory output, income and investment.

The expansion was sharply below the 5.3% annual pace of growth seen in the first quarter of the year.

The progress this year, after growth slowed sharply during the COVID-19 pandemic, has been “hard won,” the National Bureau of Statistics said.

“Since the beginning of this year, global economic growth momentum has been weak, inflation is sticky, geopolitical conflicts, international trade frictions and other problems have occurred frequently, domestic demand is insufficient, enterprises are under great operating pressure, and there are many risks and hidden dangers in key areas,” it said in a statement.

“There are many difficulties and challenges in promoting the stable operation of the economy,” it said.

Economists say weak consumer demand and reduced government spending are dragging on growth in the world’s No. 2 economy.

The statistics bureau said the economy grew at a 5% pace in the first half of the year, at the target set by the government for around 5% growth.

In quarterly terms, the way many countries report their growth, the economy grew 0.7%.

The update came as leaders of the ruling Communist Party gathered for a once-a-decade conclave to set economic policy that was expected to focus on self-sufficient strategies for growth in an era of tensions over trade and technology.

The four-day meeting of the Communist Party’s 205-member Central Committee is the third plenary session of a five-year term that started in 2022. This year’s meeting was expected to be held last year, but was delayed.

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