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

Workers monitor a production line of drip tape fittings at a factory of DAYU Water Group Co in Jiuquan during an organized media tour in China’s Gansu province on October 18, 2024. Photo courtesy: Reuters

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

The latest data shows the world’s second-largest economy is slowing from 4.7% annual growth in the last quarter and falling short of the official target of “about 5%” growth for 2024, a figure that analysts expect will be less than consumer confidence. Consider this as ambitious without more aggressive measures to boost demand. and will boost recovery in the distressed asset sector.

In a statement, the National Bureau of Statistics said the economy was “generally stable with steady progress” despite a “complex and severe external environment” and complicated domestic economic developments.

The economy remains sluggish even after COVID-19 restrictions are lifted in late 2022. Consumer confidence is low and the real estate market remains a drag on the economy.

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

But Beijing has so far held off on unveiling major new stimulus plans, which analysts and stock investors believe are needed to give the economy a big 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 ended September, compared with 0.7% growth in the previous quarter.

In the first three quarters, China’s factory output rose 5.8%, while retail sales rose 3.3% compared with the same period last year. However, property investment declined 10.1% and the value of new home sales fell 22.7%, underscoring weakness in the housing sector.

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