AlwaysFree: China’s Economy Is Reeling From Multiple Hits: Analysts

China is taking hits from multiple whammies, including a crackdown on the property market, severe power outages, stringent COVID-19 controls, and surging commodity prices. Analysts said these impacts would slow down the growth in the world’s second-largest economy in the third quarter of 2021. Analysts at Bank of America trimmed China’s real GDP growth forecast from 8.3% to 8.0% for 2021.

China’s real-estate sales and prices are already declining as the government tightened its grip on the property market as part of a broader measure to tackle financial risks. Meanwhile, power outages and soaring energy costs have forced manufacturers to slash or even suspend operations. At the same time, Beijing’s zero-tolerance approach against COVID-19 has dampened consumer spending and confidence.

China’s slowdown will affect other economies in Asia and other parts of the world, knocking commodity markets such as iron and steel, which are reliant on the country’s construction activity. Nevertheless, Chinese policymakers are not expected to pump in stimulus as they will likely meet their modest full-year growth target of more than 6%.

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