The world’s second-largest economy grew by 6.7 per cent in the three months ending in September compared with a year earlier, data showed on Wednesday. That was in line with the two previous quarters and better than some forecasters expected.
“Economic activity seems to be holding up reasonably well, with few signs that a renewed slowdown is just around the corner,” said Julian Evans-Pritchard of Capital Economics in a report.
Still, analysts cautioned growth is likely to slow next year because the latest strength is based in part on a surge in bank lending and real estate prices – both of which regulators see as a risk and are trying to restrain.
China’s economy has cooled steadily over the past six years as communist leaders try to steer it to more self-sustaining growth based on consumer spending instead of trade and investment.
An unexpectedly sharp slowdown over the past two years prompted fears of politically dangerous job losses. Beijing launched mini-stimulus measures with higher spending on construction of highways and other public works.
Exports have contracted this year due to weak global demand but retail sales, especially e-commerce, are growing faster than the overall economy.
Retail sales rose 10.4 per cent in the first three quarters, up 0.1 percentage point from the first half, according to the National Bureau of Statistics. Growth in service industries overall, boosted by a surge in real estate sales, accelerated to 7.5 per cent from the previous quarter’s 7.8 per cent.
By contrast, exports shrank by 5.6 per cent in September from a year earlier.
“Third-quarter data signalled that economic growth has stabilised at a healthy pace, and that China’s transition from a high-speed, heavy industry-based economy to a moderately-fast consumer and services-based economy is well under way,” said Andy Rothman of Matthews Asia in a report.
“The challenges of completing this transition will result in gradually slower growth rates and increased volatility, but the risks of a hard landing are very low.”
State media have warned China’s economic outlook will be “L-shaped,” meaning the downturn should bottom out but growth will not rebound to the double-digit rates of the past decade.
Repeated infusions of credit to prop up growth since the 2008 global crisis has led to a rapid run-up in China’s debt to the equivalent of 250 per cent of GDP. That has prompted warnings the country could face a financial crisis if debt growth isn’t controlled.
The central bank’s measure of total credit showed growth in September edged up to 11.3 per cent compared with a year earlier, up from August’s 11.2 per cent rate.
“The recent recovery is ultimately on borrowed time given that it has been driven in large part by faster credit growth and a property market boom,” said Mr Evans-Pritchard. “As the boost from policy stimulus begins to wear off, probably at some point early next year, continued structural drags mean the economy is set to begin slowing again.”
* Associated Press
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The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
UAE currency: the story behind the money in your pockets
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Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
