China posts 4.9% growth in the third quarter, stronger than expected

Tourists enjoy the night view along the Jialing River on February 15, 2023 in Chongqing, China.

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China’s third-quarter economic growth came in stronger than expected, boosting hopes that the world’s second-largest economy will meet Beijing’s annual target this year.

China posted 4.9% growth in the July to September quarter from a year earlier, according to a release from China’s National Bureau of Statistics on Wednesday.

That’s stronger than economists expectations for third-quarter GDP of 4.6%, according to a Reuters poll. This follows the 6.3% print for the April-June quarter and 4.5% growth for the January-March quarter.

On a quarter-on-quarter basis, China’s economy grew 1.3% in the third quarter, stronger than economists’ expectations for a 0.9% growth. GDP in the second quarter rose 0.8% compared to the previous quarter.

China also released monthly data Wednesday, reporting 4.5% growth in industrial production and 5.5% spike in retail sales in September from a year earlier — both trumping market expectations.

Unemployment eased to 5% in September from 5.2% a month earlier.

Along with monthly data released last week, the latest release further underscored what China’s top leaders labeled as a “tortuous” post-Covid economic recovery.

China’s consumer prices were flat in September, on the verge of deflation, while producer price index saw annual declines slow for a third month. September exports declined less than expected, though imports fell slightly worse than expected.

Aggregate financing — a broad measure of credit extended — climbed 9% in September, slightly more than expected. A bigger than expected decline in the value of new bank loans was offset by robust government bond issuance and shadow banking credit expansion.

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