Clock ticks for Chinese provinces struggling to hit their 2018 growth targets
- 19 of 31 provinces and municipalities were behind in meeting their annual goals after third quarter
- Provincial officials facing race to pump up their local economies to bolster their promotion chances
With slightly more than a month left of the year, Chinese provincial officials are running out of time to meet their annual growth targets, even as Beijing advances trillions of yuan from next year’s budget to stimulate local economies.
Fully 19 of China’s 31 provinces, autonomous regions and municipalities are behind in meeting their annual GDP targets set earlier this year, based on their economic data from the first three quarters of the year, published by the National Bureau of Statistics.
The effects of the central government campaign to cut excessive debt, combined with the trade war with the United States, have sapped growth in many provinces this year.
The growth shortfall in so many provinces this late in the year also raises the question of whether Beijing can meet its national 2018 growth target around 6.5 per cent. Chinese growth was 6.7 per cent through the first three quarters of the year, according to the National Bureau of Statistics, suggesting that Beijing has some leeway to meet the target even if growth slows further in the fourth quarter.
The rapid weakening of Chinese growth in the second half, and expectations that the slowdown will accelerate next year, adds to pressure on Chinese President Xi Jinping to offer concessions to reach a trade deal in his meeting with US President Donald Trump at the end of this month.