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China’s Industrial Profit Dropped Most Since 2011

According to the National Bureau of Statistics of China, the Chinese industrial profit in the first two months of this year shows a year-over-year reduction of 14 percent to 708 billion yuan (US$105 billion), the largest drop since 2011. The main reason is believed to be the weak demand both at home and abroad, resulting in a slowdown of the economy.

The world’s second-largest economy has been growing the slowest in nearly 30 years. The Chinese government has lowered its economic growth target this year from 6.6 percent to a range of 6.0 percent to 6.5 percent.

A National Bureau of Statistics official said in a statement that the profits of major industries such as automobile, petroleum processing, steel, and chemical industries have dropped significantly. These are the main contributors to the lower profit.

Source: Central News Agency, March 27, 2019