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Power Crunch May Bite China's Near-Term Growth

October 11, 2021 – Asia Today International is reporting that recent power outages and production suspensions in some parts of China are mainly due to the country's decarbonization goal and a supply-demand gap in power generation, according to ANZ Bank analysts.


"With policymakers' adopting a firm stance on curbing carbon emissions, and the upcoming electricity consumption peak, power outages and production suspension are likely to continue in the near term," the analysts said.

"According to our estimates, a power cut of 10% nationwide can trim 1.3% from overall GDP growth. As the magnitude of the power shortage remains uncertain, we will monitor China's Q4 growth outlook."

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