The slowdown in China’s economy resulting from deleveraging was finally apparent in the Q3 data, with real GDP reaching the slowest growth rate since early 2009 and secondary industry output growth hitting an all-time low. Monetary easing should drive faster credit growth and start to stabilize activity in Q4. China’s foreign exchange reserves have started to decline again with the yuan under pressure, and resilience in exporters’ performance so far is vulnerable to protectionism targeting China’s high-technology sectors. Property sales have weakened and the sector remains critical for the overall economic outlook in 2019.
