“Chinese economy” Q3 stronger than expected, growing 4.9%

On October 18, 2023, CNBC reported that China's stronger-than-expected economic growth in the third quarter raised hopes that the world's second-largest economy would achieve its 2023 annual growth target.

China's National Bureau of Statistics reported that China's economy grew 4.9% year-on-year in the July-September quarter, stronger than economists' forecasts of 4.6% for the third quarter, according to a Reuters survey. This lagged behind 6.3% for the April-June quarter and 4.5% for the January-March quarter.

Compared on a quarterly basis China's economy expanded 1.3% in the third quarter, stronger than economists' expectations for 3% growth. GDP in the second quarter rose 0.9% from the previous quarter.

China also released monthly data on Wednesday, reporting industrial production growth of 4.5% and retail sales surging 5.5% in September year-on-year, both exceeding market expectations. Meanwhile, unemployment fell to 5% in September from 5.2% the previous month.

In addition to the monthly data released last week. The latest release also reinforces what China's top leaders have branded as "unfair practices". The economic recovery is tortuous after COVID-19.

China's consumer price index remained flat in September , nearing deflation, while the producer price index showed a slower year-on-year decline for the third consecutive month. Exports in September fell less than expected, although imports declined only slightly more than anticipated.

Overall financing which is a broad credit expansion measure, increased 9% in September. which was slightly more than expected. The larger-than-expected decline in new bank loans was offset by strong government bond issuance and expansion of shadow bank lending.

Reference: https://www.cnbc.com/2023/10/18/china-economy-q3-gdp.html