China’s National Bureau of Statistics reported that third-quarter GDP growth came in at 4.6% year on year, slightly ahead of the 4.5% expected by economists. This is a decrease from the second quarter’s growth of 4.7%. The third quarter saw a 0.9% expansion on a quarterly basis, up from 0.7% in the previous quarter. Other data released, such as retail sales and industrial production, also exceeded expectations, indicating positive signs for the world’s second-largest economy. Despite challenges, China’s economy is improving, with a full-year GDP growth target of around 5% within reach with additional stimulus in the fourth quarter.
In response to disappointing economic data, Chinese officials have introduced measures to boost the economy, including reducing the amount of cash banks must hold and expanding real estate projects. The government has signaled its willingness to increase debt and the deficit to support growth. China’s Housing Ministry plans to speed up bank lending for unfinished developments, aiming to inject 4 trillion yuan into the economy by the year’s end. These measures are aimed at supporting consumer sentiment and addressing issues in the property sector. The government’s commitment to bolstering the economy has led to cautious optimism about future growth prospects.
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