In August, China’s economic growth slowed down sharply. The trend will continue in the third quarter. Stagnation in the economy predicted Chief Economist Market Securities Christoph Barro, reports Bloomberg.
According to the economist, the reason for the sharp slowdown in the third quarter will be the distribution of the “Delta” -Stamma coronavirus, since the government takes strict measures to deter dissemination. In addition, the strengthening of restrictions on the acquisition of property will lead to stagnation in the economy.
Barro predicts an increase of 0.3 percent in the third quarter compared with the second, which is much lower than the median rating of 1.1 percent in the Survey of Bloomberg economists. The economist will appreciate the forecast of economic growth below eight percent per year, if another outbreak of the “Delta” of Coronavirus will happen in the fourth quarter. At the same time, the Government of China expects growth at a level of more than six percent per year. In the second quarter, China’s GDP rose by 7.9 percent compared with the same period of 2020 and 1.3 percent compared with the previous quarter. The data on the third quarter will be published on October 18.
After the outbreak of the “Delta” -Stam in July Beijing introduced new rigid restrictions on trips to keep the spread of the virus. Nevertheless, a new epicenter of infection was formed in the southern part of China. For this reason, it is expected that restrictions will be preserved, and consumers will behave more wary. The government will continue to adhere to the policy of “zero infection”, especially on the eve of the Winter Olympic Games in February, says Barro.