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China reports third quarter GDP tomorrow with downward forecasts

 

China will report tomorrow the growth of gross domestic product (GDP) in the third quarter of the year, which, according to analysts' forecasts, will be around 6.1%, one tenth less than in the second, due to the impact of the war trade with the United States, among other factors.
The National Statistics Office (ONE) will report on the pace of growth of the second world economy in a press conference at the headquarters of the State Council (Executive) in Beijing.
The consultant Capital Economics is among those who predict a slowdown in GDP - some firms predict a drop of up to 5.9% this quarter - not only because of the tariff dispute, but also due to lower domestic demand for measures to reduce debt .
In the first quarter of 2019, China's GDP grew by 6.4% and in the second quarter by 6.2%, which was the lowest growth rate since the first quarter of 1992.
Those figures already found that China, despite continuing to advance to a still high level, was immersed in a decreasing process, something that the ONE avoided by talking about a "generally stable, regular and progressive" trend.
According to the latest forecasts of the International Monetary Fund (IMF), the Asian country will grow 6.1% this year and 5.8% next year, one and two tenths less, respectively, than expected in July, and below 6.6% of 2018.
However, these levels of growth would be in the prudent line of the target set by Beijing for this year, which instead of being a fixed figure as on previous occasions was established on a fork of between 6 and 6.5%.
The impact of US tariffs, despite the fact that the two sides reached a partial agreement last weekend to trump the dispute, add other factors such as the contraction of foreign trade and the aforementioned weakening of domestic demand, which They are already retracting GDP, experts say.
"The growth momentum is weak given the disappointing impact that the government stimulus policies have had so far. A greater flexibility of these policies is needed to underpin the economy and support imports," says Oxford Economics.
The report that will be published tomorrow will also include other indicators, such as industrial production, employment or investment in fixed assets, which will give a broad overview of the Chinese economic situation.

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