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China's economy slows down as investment growth drops to the worst level in 18 years

China reported a heap of less upbeat data today, it includes the lowest investment growth in almost 18 years, which implies that Chinese economy at last begins to decelerate because of the increasing cost of borrowing.

Industrial production and retail sales did not rise as much as had been expected too, however, a rebound in sales of real estate and construction boom will probably keep the country’s general growth quite firm and nicely in line with the target, in the run-up to the shakeup at the top in the coming month.

The risk for the world’s number 2 economy is not in the nearest months, but rather years, says Julian Evans-Pritchard of Capital Economics.

Crucially important reforms, as pushing the productivity of state-owned companies, have been rather hard-going and the structural obstacles for growth keep being tangible and are big problems, he added.

Economists had predicted China’s results for August to demonstrate factory production and retail sales growth upping following a bit of slip in July, whereas investment was seen as just minimally lower. It would’ve blended in into a scheme of the figures surpassing the expectations in the first six months of the year and optimistic polls for August industrial output.

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