Chinese economy under pressure as industrial growth slows in third quarter (MIIT)
China has seen increasing downward pressure on its economy as industrial production growth slowed in the third quarter, the Ministry of Industry and Information Technology (MIIT) said on Tuesday at a press conference.
Industrial production growth fell to 3.1% year-on-year in September from 5.3% in August, marking the slowest growth since March 2020 during the first wave of the COVID-19 pandemic, according to the reports. Data from the National Bureau of Statistics (NBS) released on Monday.
The slowdown in the growth of industrial production has been particularly affected by the recent resurgence of COVID-19, flooding, rising commodity prices, the energy crisis and chip shortages, according to the ministry.
âThe current external environment is still complex and changing, and there are still many unstable and uncertain factors facing the growth of the country’s information industry and sector,â said Luo Junjie, an MIIT official. .
SNB data also showed that in the first nine months, the total value added of industrial enterprises above the designated size increased by 11.8% year-on-year, a two-year average growth of 6 , 4%.
There are concerns and even speculation about a possible disruption in Chinese manufacturing industries, as the country eases the electricity shortage due to a coal shortage and rising global prices.
A number of provinces and regions, especially in northeast China, experienced power outages in the past month. The government said it would keep an eye on the situation and mitigate the impact by further improving the industry’s shift from high energy consumption to low carbon emissions.
“We believe that the constrained energy supply and its impact on industrial economic performance will be mitigated through measures such as market-oriented reforms and ensuring supply and price stability,” Luo said. .
COVID-19, the chip shortage and other factors at home and abroad have put the Chinese economy to the test. Despite this, China’s overall economic growth in the first 9 months reached 9.8%, better than the annual growth target, set at over 6%.
Officials say they are confident in keeping the industry and the information economy running and, despite the challenges, meeting the targets set for this year.
âIn general, industry and information technology have been stable since the start of this year, demonstrating that the Chinese economy is on a long-term positive development trend with strong resilience,â Luo said.
(CGTN’s Sun Tianyuan and Shen Hui also contributed to the story.)