The growth of China's economy showed a slight deceleration during the third quarter; however, results were more favorable than anticipated, driven by a series of encouraging economic indicators released on Friday. China's gross domestic product (GDP) expanded by 4.6% in this quarter, as detailed by data from the National Bureau of Statistics (NBS).
While this figure is lower than the 4.7% increase recorded in the previous quarter, it has outperformed the 4.5% growth prediction established by analysts surveyed by Reuters. In terms of year-to-date performance, China's GDP has increased by 4.8% year-on-year during the first three quarters, a figure that is nearly in alignment with China's ambitious target of 5% GDP growth set for the year. The NBS reported that this growth can be attributed to a notable uptick in production and consumer demand observed in September, alongside various cumulative positive factors that have been stimulating the economic recovery. Retail sales experienced a notable growth of 3.2%, while industrial production surged by 5.4%.
These figures, according to additional data from the NBS, surpassed the expectations set by economists polled by Reuters, who had forecasted increases of 2.5% and 4.5% respectively. Lynn Song, chief economist for Greater China at ING, commented on these results, stating that they help bring China's GDP closer to its intended growth target this year.
“The positive outcome in the third quarter data keeps China very much within reach of achieving its full-year growth goal of approximately 5%, requiring a slightly less robust growth rate in the fourth quarter than might have been previously anticipated,” Song explained..