Why is China's economy slowing?

Short answer

China's slowdown reflects a deep property crisis, weak consumer confidence, high youth unemployment and shrinking exports.

What happened

China's GDP growth slipped below its long-run trend and factory activity contracted for several months.

Why it happened

The property sector — historically 25% of GDP — is deleveraging. Consumers are saving instead of spending. Global demand for Chinese exports has softened.

Why investors care

China is the world's second-largest economy and the biggest buyer of commodities. Its slowdown hits luxury brands, miners, carmakers and oil.

How it affects ordinary people

Cheaper oil and metals. Weaker Chinese demand can slow global growth.

FAQ

Is China in a recession?

Officially no, but growth has slowed sharply from double-digit rates of the 2000s.