China’s GDP Growth May Fall Below 3 Percent Amid Severe Drought, Power Crunch: Economist

Extreme heat in China cuts crop yield and threatens livestock

A villager gathers water at a dried-up riverbed, in the Guangxi region of China in May 2012. ChinaFotoPress/Getty Images

A power crunch and record heatwaves in China have disrupted factories, offices, farmlands, and many of the cities’ essential functions. Some subway stations are reportedly dimmed, with little to no lighting.

Dan Wang, chief economist of Hang Seng Bank (China) told CNBC that the power crisis and droughts would likely cause China’s GDP growth to fall below 3 percent, lower than the already reduced projection.