The growth of the Chinese economy has fallen to its lowest level in almost three decades since the last quarter, a consequence also of the trade war with the United States.
The gross domestic product has registered the weakest quarterly growth rate since 1992, down from 6.2% in the previous quarter (April-June), according to statistics released by the government on Friday, recording a figure lower than the forecast of 6.1 %.
“Trade tension with the US is the key factor weighing on business sentiment and investment activities, although domestic stimulus policies are providing some buffer from the downside,” said Chaoping Zhu, global market strategist for JP Morgan Asset Management.
The slowdown was not stopped by the efforts made by the Chinese government to support the economy, including some measures such as tax cuts.
The strength of the Chinese economy is followed very closely as the slowdown in growth can have far-reaching consequences for the global economy.
The negative data emerged a week after the truce reached between China and the United States to avoid further damage to the global economy.
The upcoming negotiations could have a positive impact on the general sentiment of the business, but the rates, although they have not been increased, are still all there.
The preliminary agreement reached the previous week includes a halt to the increase in tariffs that should have come into force.
According to President Donald Trump, the agreement would also include intellectual property, financial services, and agricultural purchases.
But the two sides still do not seem to have reached a broader agreement, able to solve all the problems on the table.