China's economy grew 4.6% in July-September quarter, falling short of 5% target

The latest data show the world's second largest economy slowing from 4.7% annual growth in the previous quarter and falling short of the official target of “about 5%” growth for 2024,

Published - October 18, 2024 10:25 am IST - Hong Kong

Workers monitor the production line of drip tape fittings at a factory of DAYU Water Group Co, in Jiuquan, during an organised media tour in Gansu province, China October 18, 2024.

Workers monitor the production line of drip tape fittings at a factory of DAYU Water Group Co, in Jiuquan, during an organised media tour in Gansu province, China October 18, 2024. | Photo Credit: REUTERS

China's economy expanded at a slower-than-expected rate of 4.6% in the July-September quarter, the government said Friday (October 18, 2024).

The latest data show the world's second largest economy slowing from 4.7% annual growth in the previous quarter and falling short of the official target of “about 5%” growth for 2024, a figure that analysts consider ambitious without more aggressive measures to spur consumer demand and spur a recovery in the ailing property sector.

In a statement, the National Bureau of Statistics said that the economy was “generally stable with steady progress” even in the face of a “complicated and severe external environment” and complicated domestic economic development.

The economy has remained sluggish despite the lifting of COVID-19 restrictions at the end of 2022. Consumer confidence is low and the real estate market remains a drag on the economy.

Chinese policymakers have in recent weeks announced a wave of measures aimed at boosting the economy, including reducing mortgage rates for existing homes and allowing banks to lend more by reducing reserve requirements.

But Beijing has so far stopped short of unveiling major new stimulus plans that analysts and stock investors believe is needed to give the economy a major boost.

China's growth rate in the first three quarters of the year was 4.8%. On a quarterly basis, the economy expanded 0.9% in the quarter that ended in September, up from 0.7% growth in the previous quarter.

For the first three quarters, China's factory output rose 5.8%, while retail sales expanded 3.3% compared to the same period last year. However, property investment sank 10.1% and the value of new home sales plunged 22.7%, underscoring weakness in the housing sector.

Earlier this week, China reported its September exports slowed sharply, rising just 2.4% in dollar terms from a year earlier, down from 8.7% year-on-year growth in August. Imports were also weak, growing just 0.3% and missing estimates.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.