Investments in China’s railroad sector has slowed as Beijing handles excess debt from stimulus measures, showing signs of falling economic growth, according to analysts, reported the South China Morning Post.
According to the National Railway Administration, railway investment this year fell 8% from the previous year to 203.6 billion RMB ($31.5 billion). In 2020, China spent RMB 781.9 billion on investments, compared to RMB 803.9 billion in 2019 and RMB 802.8 billion in 2018.
The decrease in railway spending coupled with slowing investments overall and weaker consumer spending are signals that China’s economic recovery has slowed, said investment bank Natixis.
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