China’s economy exceeded expectations with a faster-than-expected growth rate in the third quarter, according to official data released on Wednesday. The data suggests that the country’s recent recovery may have enough momentum to reach Beijing’s full-year growth target. Gross domestic product (GDP) grew by 4.9% in the July-September period compared to the same period last year, surpassing analysts’ expectations of a 4.4% increase but slower than the 6.3% expansion in the second quarter. On a quarter-by-quarter basis, GDP grew by 1.3% in the third quarter, accelerating from a revised 0.5% in the second quarter, outperforming the forecasted growth of 1.0%.
Thanks to a series of policy measures implemented in recent months, China’s economy has started to show signs of stabilizing. However, challenges such as a prolonged property crisis, uncertainties over employment and household income, and weak confidence among private firms continue to pose risks to a sustainable recovery.
The stronger-than-expected data had a positive impact on the Chinese yuan, which strengthened against the dollar. However, Chinese stocks remained relatively muted following the release of the GDP data.
Experts have offered their analysis of the data, with some expressing optimism about China’s progress and the potential for achieving the government’s 5% growth target. Others cautioned that challenges in the property market and the need for continued policy stimulus could impact the pace of recovery.
Overall, the data indicates that China’s economy is showing signs of resiliency and is on track to achieve its growth target for the year. However, uncertainties and risks still remain, and policymakers will need to carefully navigate these challenges to ensure a sustained and robust recovery.
