China’s National Bureau of Statistics reported a third-quarter GDP growth of 4.6% year on year, slightly above expectations. This is lower than the second-quarter growth of 4.7%. Other data released, such as retail sales and industrial production, also exceeded expectations. Beijing has faced criticism over meeting its annual growth target of around 5%. Despite challenges, it seems achievable with additional stimulus measures in the fourth quarter. Chinese officials have implemented support measures to boost the economy, including reducing the amount of cash banks need on hand by 50 basis points. More stimulus measures have been introduced due to low consumer sentiment and a struggling property sector. The government has the option to increase debt and the deficit as needed. The Housing Ministry announced plans to expand real estate projects and accelerate lending for unfinished developments to 4 trillion yuan by the end of the year. Economists are cautiously optimistic about China’s economic growth prospects, citing the government’s commitment to supporting the economy.
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China surpasses expectations with 4.6% GDP growth in third quarter
