China says its economy grew 6% in the third quarter, slower than expected – CNBC, CNBC

Chinareleased third-quarter GDP figures on Friday showing the economy grew 6.0% from a year ago – the lowest in at least 27 – 1/2 years, according to Reuters records.

Analysts polled by Reutershad expected China’s third-quarter GDP to grow 6.1% from a year ago.

In the second quarter of 2019,China’s economy grew 6.2%from a year ago, as the country trade war with the US

China’s GDP has fallen sharply since the first quarter of 2018 when it grew 6.8% due to credit tightening and the country’s trade dispute with the US, said Vishnu Varathan, head of economics and strategy for the Asia and Oceania Treasury Department at Mizuho Bank.

“There is no doubt that the downturn is serious,” Varathan added in a note on Monday sent before the data.

Beijing’sofficial growth target for 2019is 6% to 6.5%.

China’s growth is likely to continue to slow in the next two quarters, said Bo Zhuang, chief China economist at TS Lombard.

That comes as real output growth in services has slowed aggressively in the last few months, Zhuang told CNBC’s “Street Signs.”

Zhuang expects China’s growth to slow to 5.8% in the fourth-quarter of the year, with the country full-year growth target to be 6.1%.

“Given the trade talks and the conflict with the US, Chinese authorities are accepting lower growth rate, “said Zhuang.

Although Beijing’s official GDP figures are tracked as an indicator of the health of the world second-largest economy, many outside experts have long expressed skepticism about the veracity of China’s reports.

Recent data out of China has not been upbeat.

China’simport and export data for Septembercame in worse than expected amid the country trade friction with the US

The two economic giants have been embroiled in a trade dispute for more than a year, with each country applying tariffs on billions of dollars worth of goods from the other.

The latest round of trade talks between the world’s two largest economies ended late last week in Washington, DC After the meeting,the U.S. said it would suspend a tariff increaseon Chinese goods that were supposed to take effect on Tuesday this week.

U.S. PresidentDonald Trumpsaid China agreed to a“very substantial phase one deal”that will be written over the next three weeks. Trump also said the deal would address intellectual property and financial services concerns, as well as Chinese purchases of about $ 40 billion to $ 50 billion US agricultural products.

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