China’s GDP grows 4.9% in the third quarter – 10/17/2023 – Market

China’s economy grew at a faster pace than expected in the third quarter, according to official data released on Tuesday night (17).

According to the country’s official statistics body, GDP grew 4.9% in the third quarter compared to the previous year — analysts consulted by Reuters predicted an increase of 4.4%. In the second quarter, expansion was 6.3% on an annual basis.

The data shows that the Chinese economy is recovering faster than expected, suggesting that the recent recovery may be enough to meet the country’s annual growth target of 5%.

On a quarterly basis, the economy grew 1.3% in the period, accelerating from the revised rate of 0.5% in the second quarter, and above the 1% growth forecast.

The economy weakened in the second quarter after a brief post-Covid recovery, driven by a crisis in the property sector and debt due to a long period of investment in infrastructure.

The world’s second-largest economy has started to show signs of stabilization thanks to a recent series of policy measures, but uncertainties about employment, household income and low confidence among private companies pose risks to a lasting recovery.

Xi Jinping’s government has announced a series of measures in recent weeks, including more spending on public works, cuts in interest rates, easing the real estate sector and efforts to strengthen the private sector.

Industrial production in September grew 4.5% year-on-year, stronger than expected, but the pace was the same as in August, according to the data. Analysts expected a 4.3% increase.

Growth in retail sales, an indicator of consumption, also exceeded expectations, rising 5.5% last month and accelerating from a 4.6% increase in August. Analysts expected sales to expand 4.9%.

Investment in fixed capital grew 3.1% in the first nine months of 2023 compared to the same period of the previous year.