China released a raft of economic data Friday morning, but the headline figure was 6%. That’s the rate of GDP growth in the third quarter as compared to the same period last year, and it’s lower than the 6.1% growth analysts polled by Reuters had anticipated. In fact, it’s China’s lowest quarterly economic growth since records began 27 years ago in 1992.
Domestic factors were the biggest drag on China’s economy in the third quarter. Investment is , while the pickup in infrastructure spending is plateauing; credit growth has failed to respond to monetary easing and consumer inflation has surged—pork prices, in particular, soared 47% in August as China struggles to contain a devastating outbreak of African Swine Fever.
Depending upon how you measure it—by purchasing power parity or in U.S. dollar terms—China’s $14 trillion economy is either the largest or second largest in the world. The country’s GDP accounts for a close to a third of global growth. So naturally, a slowdown in China has repercussions for world economies.