While economists agree growth fell below 7 percent in the July-September period, down from 7 percent in both the first and second quarter, the magnitude of the slowdown remains a source of debate.
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That would be the weakest pace of expansion since the first quarter of 2009, when it tumbled to 6.2 percent, but far from an alarming loss of momentum. Referring to a new study by the Center for Strategic and worldwide Studies (CSIS), NAB said that adopting the latest methodology would result in a significant increase in the estimated size of the Chinese economy.MSCI’s 45-country All World stock index was lower 0.4%, trading at 400.24 points following a nearly 2% drop in Japan’s Nikkei index, which steered Asia lower and because of all these factors, the pan European FTSEurofirst 300 opened around 1% in the red.Brent oil retreated on the way to trade $49 per barrel since the worldwide Energy Agency has suggested the oil glut will continue throughout next year. Technology has changed, yet the accounting system used by China to measure economic activity has not.
While doubts about the accuracy of Chinese GDP data persist, the doubters may be looking at it the wrong way around. On the flip side, a few economists buck that view and believe consumption and service-sector growth are being underestimated by the government.
Sheng Laiyun, spokesman for the National Bureau of Statistics, said last month that third-quarter economic growth will be largely stable as the impact from the stock market slump on the broader economy has been limited. That would be on top of five interest rate cuts and three reductions to the reserve requirement ratio since November.
Weak inflation data from China pulled Asian markets down overnight, as consumer inflation fell back and producer prices continued their deflation unabated.
Annual retail sales growth was seen at 10.8 percent in September, unchanged from August.
China has officially set its GDP growth target at “around 7%” for all of 2015 – its lowest in 11 years.
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Pressure on the mainland market built after local media reported the chief economist at the People’s Bank of China, Massachusetts Jun, had denied the central bank’s weekend move to boost bank lending was China’s version of quantitative easing.
