China’s Economic Growth Exceeds Expectations
Strong foreign demand for technology products has partially offset the effects of the real estate crisis and weak consumer demand.
China’s economy grew by 4.5% year-on-year in the third quarter. Strong foreign demand for technology products partially offset the effects of the deepening real estate crisis and weak consumer demand.
Growth exceeded analysts’ expectations of 4.4%. In the second quarter, economic growth stood at 4.3%. During the first 9 months of the year, China’s economy expanded by 4.6%, in line with Beijing’s annual growth target of 4.5–5%.
Tianchen Xu, chief economist at the Economist Intelligence Unit, attributed the recovery observed in September to increased government investment, strong foreign trade performance, and a low base effect. China’s monthly trade surplus reached a record $133.5 billion in September.
In September, retail sales increased by 1.1%, while industrial production rose by 5.5%. The urban unemployment rate stood at 5.2%.
However, investment continued to decline. During the first 9 months of the year, investment in fixed assets fell by 7.2%, while investment in the real estate sector dropped by 20.6%. These figures indicate that weak domestic demand and the property market remain significant challenges for economic growth.