China sees growing risk of weakening external demand in Q4
Reuters
Published Oct 27, 2022 04:56AM ET
Updated Oct 27, 2022 05:09AM ET
BEIJING (Reuters) - China's economy is facing growing risks of slowing external demand in the fourth quarter, a commerce ministry spokesperson said on Thursday, adding that uncertainties were overshadowing growth in China's foreign trade.
As the world economy loses momentum, the environment for trade was getting increasingly complex for China, commerce ministry spokesperson Shu Jueting told a regular news conference.
"Looking into the fourth quarter, the risk of slowing external demand is expected to increase," she said.
China's exports grew 5.7% from a year earlier in September, the slowest pace since April. Imports rose a feeble 0.3%, undershooting estimates for 1.0% growth.
It comes as monetary tightening across the world to contain red-hot inflation is curbing global economic growth.
Despite the challenges, conditions were still favourable for a stable growth in trade between China and other countries, Shu added.
Beijing's stringent zero-COVID strategy has also squeezed sectors that are particularly sensitive to pandemic restrictions such as services.
"The consumption market continues a recovery and growth trend, but due to unexpected factors including the COVID outbreaks, market entities in sectors of brick and mortar retail, catering and accommodation still face huge pressure," Shu said.
She expected consumption to rebound as policy support takes effect.
China's retail sales, an indicator of consumption, grew 2.5% last month, missing forecasts for a 3.3% increase and easing from August's 5.4% pace, underlining still fragile domestic demand.
Even if the economy rebounds at a faster-than-anticipated clip in the third quarter, a long-term recovery will be challenged by persistent COVID-19 curbs, a prolonged property slump and global recession risks, economists say.
A Reuters poll forecast China's growth to slow to 3.2% in 2022, far below the official target of around 5.5%, marking one of the worst performances in almost half a century.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.