Slowdown in services and agriculture drag on China’s economic growth
January 23, 2019
Slower growth in the services and farming sectors dragged down China’s economic growth during the last quarter of 2018, countering the boost from a government-led uptick in construction activity, Reuters reports.
Growth in services fell to 7.4% from 7.9% in the previous quarter, while agriculture grew 3.5%, down from 3.6%, according to data from the National Bureau of Statistics.
Services accounts for nearly 50% of China’s economy, as Beijing attempts to transition away from its export-led growth model toward one based on domestic consumption. However service industries from real estate to technology are being affected by a weakening in consumer spending and bearish investor sentiment.
Real estate services suffered a sharp slowdown, with growth falling to 2% from 4.1% a quarter earlier.