When a leading economy like China faces stagnant growth, it becomes alarming for the experts of world markets and economists, about the way every economy will be affected by it. The third quarter report by the National Bureau of Statistics(NBS) suggested that the growth China saw was just 4.9%.
Experts are citing the current energy crisis as one of the main reasons for China's staggering growth. This is especially shocking after the notable recovery in the first quarter at 18.1%. What the Communist Party of China was predicting as the year of recovery after their rapid control of the COVID-19 pandemic last year, the report of the third quarter does not seem too promising.
Besides the power crisis, there has been a considerable decline in the supply chain as well since the onset of the pandemic. With border restrictions due to unpredictable surges in the COVID-19 cases, the production and manufacturing sector has been suffering.
The high electricity demand needed for a recovering economy in the background of a coal crisis is worsening the situation. The added pressure of changing climate change policies and ultimately the sources of energy is pushing the economic output of China further down. But it isn't just China that is struggling, the experts are projecting a negative after effect for most of the world's countries in their economy.