China's growth slowed to 7.4 per cent in the third quarter from a year earlier, a better than expected result that helped to ease fears about the world's second largest economy.
Nonetheless, it was the seventh consecutive quarter of slowing annual expansion.
In a boost for the economy, investment, retail sales and industrial output picked up at the end of the quarter.
The data, released yesterday by the National Bureau of Statistics, will be greeted with cautious relief by the GCC, a big supplier of oil and other goods to the Asian tiger.
"Those fearing a hard landing will be able to sleep a little better tonight, but those positioned for a clear recovery might be disappointed," Alistair Thornton, the senior China economist at IHS Global Insight, wrote in a client note. "The picture is one of emerging stabilisation, not the return of unbridled optimism."
Even if China's economy does manage to gain momentum, any increase is unlikely to be robust enough to avoid the country recording the lowest annual growth since 1999.
Slowing investment and household spending in China and the collapse of demand in the euro zone, a major market for its goods, has undermined the economy's engine this year.
Annual GDP growth in the first nine months of the year reached 7.7 per cent, marginally lower than 7.8 per cent in the first half of the year. But the statistics bureau maintained yesterday China would either meet or beat the government's target of 7.5 per cent growth for the year.
Many businesses in the GCC have been closely monitoring China's slowdown this year. About half of the GCC's trade is with Asia, with China now Dubai's second biggest trading partner for non-oil goods. But as China's commodity-guzzling engine has started to splutter, the threat of softening demand for oil and other GCC goods has risen.
Prices of Brent crude held steady above US$113 per barrel in the wake of China's latest data. The S&P GSCI Index of 24 raw materials rose 0.1 per cent.
Uncertainties, however, remain for businesses with links to China.
"I don't have confidence (in the outlook)," said Eric Fu, the general manager of China National Building Materials Group in the UAE. "It is still not clear what will happen with the most important event this year - the Communist Party Congress at the end of the year."
The congress starting on November 8 is slated to bring in a once-in-a-decade change in leadership in China and raises the possibility of changes to economic policies.
Attention will also turn to whether the extent of China's slowdown is serious enough to warrant a fresh stimulus to bolster the economy.
The government has already approved $157 billion (Dh576.66bn) of spending on infrastructure projects and cut interest rates twice this year in an effort to revive the economy.
"The data was broadly in line with expectations but if we are seeing signs of stabilisation, some people might be concerned it might remove the need for stimulus," said Tim Fox, the chief economist of Emirates NBD.
tarnold@thenational.ae
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Killing of Qassem Suleimani
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Results
2pm Handicap (PA) Dh85,000 1,800m
Winner AF Al Baher, Tadhg O’Shea (jockey), Ernst Oertel (trainer).
2.30pm Maiden (TB) Dh75,000 1,400m
Winner Alla Mahlak, Fabrice Veron, Rashed Bouresly.
3pm Handicap (TB) Dh80,000 1,400m
Winner Davy Lamp, Adrie de Vries, Rashed Bouresly.
3.30pm Handicap (TB) Dh105,000 1,400m
Winner Ode To Autumn, Richard Mullen, Satish Seemar.
4pm Handicap (TB) Dh80,000 1,950m
Winner Arch Gold, Pat Dobbs, Doug Watson.
4.30pm Maiden (TB) Dh75,000 1,800m
Winner Meqdam, Pat Dobbs, Doug Watson.
5pm Handicap (TB) Dh90,000 1,800m
Winner Native Appeal, Sam Hitchcott, Doug Watson.
5.30pm Maiden (TB) Dh75,000 1,400m
Winner Amani Pico, Tadhg O’Shea, Satish Seemar
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
UAE currency: the story behind the money in your pockets
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
A%20Little%20to%20the%20Left
%3Cp%3E%3Cstrong%3EDeveloper%3A%20%3C%2Fstrong%3EMax%20Inferno%3Cbr%3E%3Cstrong%3EConsoles%3A%3C%2Fstrong%3E%20PC%2C%20Mac%2C%20Nintendo%20Switch%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%26nbsp%3B%3C%2Fp%3E%0A
