- Louis Kuijs, Oxford Economics
The world's second biggest economy posted its weakest quarterly economic growth since the global financial crisis, building pressure on policy makers to slash interest rates further and deploy additional support measures to avert "hard landing". China's economy expanded by 6.9% on year in the third quarter, slightly better than economists forecasts for a 6.8%. While better than expectations, growth was still the slowest since the January-March period of 2009, when the economy expanded by 6.2%. China's slowdown has not come as a surprise to policy makers, who have been shifting focus from investment-driven growth to a consumer-led economy over the last few years. However, the extent of the slowdown has fuelled concerns. The Chinese economy grew at its weakest rate in 24 years in 2014, and is set to grow at an even weaker pace this year, likely missing the government's goal of 7%.
Other September figures also pointed to stubborn weakness in the Chinese economy. Manufacturing output increased 5.7% in September from a year ago, against forecasts for a 6% rise, while fixed-asset investment (FAI), a key driver of the economy, surged 10.3% in the first nine months of the year, below estimates of 10.8%.
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