China's economy stumbles on power crunch, property woes - Reuters

Oct 18, 2021

BEIJING, Oct 18 (Reuters) - China's economy hit its slowest pace of growth in a year in the third quarter, hurt by power shortages and wobbles in the property sector, highlighting the challenge facing policymakers as they seek to prop up a faltering recovery while reining in the real estate sector.

Gross domestic product expanded 4.9% from a year ago, missing forecasts, as attempts by Beijing to curb lending to the property sector exacerbated the fallout from electricity shortages which sent factory output back to levels last seen in early 2020, when heavy COVID-19 curbs were in place.

Overall industrial output rose just 3.1% in September from a year earlier, marking the slowest growth since March 2020, during the first wave of the pandemic.

On Sunday, People's Bank of China governor Yi Gang said the economy is expected to grow 8% this year

Still, the central bank is expected to remain cautious about monetary easing due to worries about high debt and property risks

Analysts polled by Reuters expect the People's Bank of China to refrain from attempts to stimulate the economy by reducing the amount of cash banks must hold in reserve until the first quarter of 2022