China’s National Bureau of Statistics reported third-quarter GDP growth of 4.6% year on year, slightly exceeding expectations. This is lower than the second-quarter growth, but on a quarterly basis, there was an expansion compared to the previous quarter. Other data, such as retail sales and industrial production, also beat expectations. Despite concerns about meeting the annual growth target of around 5%, it is now within reach with extra stimulus in the fourth quarter. Chinese officials have announced support measures to jumpstart the economy, including cutting banks’ required cash reserves. Additional stimulus measures have been implemented amid low consumer sentiment and a struggling property sector. The government is committed to shoring up the economy and is optimistic about growth in the coming years. The Housing Ministry has announced plans to expand the “whitelist” of real estate projects and accelerate bank lending for unfinished developments to stimulate economic growth. China’s Minister of Finance mentioned that the government has room to increase debt and the deficit, but did not provide specifics on the package size. Despite challenges, there is hope for China’s economy with continued support measures and government commitment to growth.
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China’s third-quarter GDP growth exceeds expectations at 4.6%
