China’s economy performed better than expected in the third quarter. As the statistics office in Beijing announced on Wednesday, the Chinese economy grew by 4.9 percent compared to the third quarter of the previous year. Analysts had on average expected growth of 4.4 percent.
After the country lifted its strict corona restrictions in December, the recovery fell short of expectations. The export-driven economy is suffering primarily from weak global demand, the struggling real estate market and weak domestic consumption.
“Domestic demand remains inadequate”
Recently, however, there have been initial signs of stabilization. Foreign trade contracted less than expected in September, as customs data showed last week. Both retail sales and industrial production picked up in September, the statistics office said. With an increase of 5.5 and 4.5 percent year-on-year, both key figures were above forecasts.
“Overall, the national economy continued to recover and improve in the first three quarters,” said Sheng Laiyun, deputy director of the Beijing Bureau of Statistics. “However, it can also be seen that the external environment is becoming more complex and difficult, domestic demand remains insufficient and “The foundations for economic recovery still need to be consolidated,” Sheng continued. But he is “very confident” that China will achieve its growth target.
Combined, the world’s second-largest economy grew by 5.2 percent from January to the end of September. The Chinese government’s growth target for the year as a whole is 5 percent. In order to counteract the economic slowdown, the Chinese central bank only intervened at the beginning of the week and gave the banking system a large cash injection.