China’s Q3 GDP Growth Hits 4.5%, Outpacing Market Forecasts

POLICY WIRE — Beijing, China — China’s economy demonstrated a slight acceleration during the third quarter, surpassing the projections set by market analysts, according to official data released on Monday.

The National Bureau of Statistics reported that gross domestic product (GDP) climbed 4.5% between July and September compared to the same timeframe last year. This performance marks a recovery from the 4.3% growth observed in the second quarter, following a 5% expansion during the initial three months of the year.

Market experts had anticipated a growth rate of 4.4% for the third quarter. With these latest figures, the government remains on track to meet its full-year target, which is set between 4.5% and 5%.

Despite the uptick in growth, the economic landscape remains fragmented. While the export sector continues to thrive, domestic demand remains notably soft.

Customs data indicates that exports surged by 21.3% year-on-year in US dollar terms throughout the first nine months of the year. During this period, the nation recorded a trade surplus of approximately $938 billion.

This substantial surplus is fueling friction with international trading partners, particularly in Europe, where officials are increasingly concerned that low-cost Chinese goods are placing undue strain on local manufacturers.

Domestically, the economic picture is more subdued as consumer spending remains cautious and investment activity stays sluggish. A persistent property crisis continues to act as a drag on the economy, as declining housing values dampen consumer sentiment and lead developers to scale back their capital commitments.

Furthermore, local governments are grappling with diminished revenue streams from land sales, a factor that is complicating the broader economic recovery efforts.

Reporting by Policy-Wire (PW)