In the past week, China has unveiled a set of economic stimulus measures ahead of a critical Politburo meeting aimed at assessing the first half performance of the world’s second-largest economy. On Friday, the National Bureau of Statistics reported a 4.6% year-on-year GDP growth for the third quarter, surpassing the 4.5% forecast by economists surveyed by Reuters. However, it slightly undershoots the second quarter’s 4.7% growth. Quarterly growth improved to 0.9% from 0.7% in the previous quarter.
“The national economy showed positive growth signs in September,” said Sheng Laiyun, deputy commissioner of the bureau, as translated by CNBC. There is growing optimism that the economy could hit the full-year growth target of approximately 5%. Retail sales and industrial production also exceeded expectations, offering hopeful indicators for the economic forecast.
China has been under public pressure to achieve its annual growth target of “around 5%.” With a 4.8% growth reported over the first three quarters, reaching this target seems plausible with additional stimulus in the fourth quarter, according to Tianchen Xu, senior economist at The Economist Intelligence Unit. Xu expressed optimism, citing the government’s commitment to revitalizing the economy.
After disappointing data last month, Chinese officials announced policies aimed at reviving the sluggish economy, such as reducing the cash reserve ratio for banks by 50 basis points. Additional stimulus measures have been deployed amid low consumer sentiment and a weakening property sector. China’s Minister of Finance, Lan Fo’an, mentioned the possibility of increasing debt and deficit spending to further bolster the economy, although specifics on the scale were not provided.
Following the release of the economic data, mainland China’s CSI 300 rose by 0.7%, and Hong Kong’s Hang Seng index increased by 1.3%. Bruce Pang, chief economist at JLL, noted that the economic performance aligns with market expectations, considering the weak domestic demand, struggling housing market, and slowing exports.
Original Story https://www.cnbc.com/2024/10/18/chinas-reports-third-quarter-gdp-growth-of-4point6percent-beating-expectations.html
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