Chinese economic growth probably slowed to 6.6% in Q3 2016

Chinese economic growth probably slowed to 6.6% in Q3 2016, after the reported 6.7%, consider experts and analysts. China probably has increased its gross domestic product (GDP) by only 6.6% in the three months from July to September, after reporting growth of 6.7% in the second quarter. If the estimate is confirmed, this would be the weakest quarterly growth in the second economy in the world for 7 years. The official government data on GDP will be published in the Wednesday and is expected with increased attention despite their disputed reliability.

Even with diminished powers, the Asian country remains one of the main drivers of growth in the world. It is the first trading power and a major consumer of raw materials whose behavior is largely determined global markets. The measures to mitigate the monetary policy adopted by the end of 2014, the big tax cuts, especially the jump in investment in real estate activity strengthened considerably industry.

There is a moderate economic revival, helped by activation measures taken by the authorities. At the same time, the government spending remains high and monetary policy is aimed at supporting the economy. The communist regime advertised widely efforts to rebalance the economic model of China, reducing colossal overcapacity, which are a burden on industry by removing state companies, called zombies, that have accumulated large auctions, as well as stimulate domestic consumption and the service sector.

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