søndag 17. oktober 2021

China’s Economy Is Reeling From Successive Punches: Eco Week

China is counting the cost of a multiple whammy of hits to its economy, from a crackdown on the property market and an energy crunch to stringent virus controls and soaring commodity prices. The cumulative impact will show in gross domestic product for the third quarter due on Monday, with growth forecast to slow to 5% from 7.9% in the previous three months. Further illustrating that picture will be monthly industrial and investment data the same day, revealing the severity of electricity shortages last month.

China’s slowdown will ripple across Asia and the rest of the world, knocking commodity markets like steel and iron ore that are reliant on the country’s construction activity. With Beijing tightening its grip on the property market as part of a broader effort to tackle financial risks, real-estate sales and prices are already falling.

Meanwhile, a power shortage last month curbed factory production, pushing the purchasing managers index down enough to signal a manufacturing contraction for the first time since the pandemic started -- even if frontloaded export orders for Christmas could have offset some of that.