Economics

China Leisure Spending Remains a Drag on Rebounding Economy

  • GDP breakdown shows hotel, catering sector still contracting
  • Consumer spending is picking up gradually with virus curbed
Photographer: Yan Cong/Bloomberg
Lock
This article is for subscribers only.

China’s hotels and restaurants, one of the hardest-hit industries in the economy during the coronavirus pandemic, remained a significant drag on growth in the third quarter even as the recovery steadily gains momentum.

The sector contracted 5.1% from a year ago, the statistics bureau said Tuesday in a supplemental report on gross domestic product, an improvement from the 18% decline in the second quarter. For the first nine months of the year, output was down 19.1% compared to the same period in 2019.