Key facts
- Third-quarter GDP grew 4.5% year-on-year, exceeding the 4.4% forecast.
- Quarterly GDP grew 1.2%, surpassing the 1.1% expectation.
- Strong exports and manufacturing output supported growth.
- Domestic demand, private investment and the property sector remained weak.
- Industrial output rose 5.5% in September, while retail sales grew 1.1%.
China's economic growth accelerated to 4.5% year-on-year in the third quarter, beating expectations and easing pressure on policymakers to deliver more aggressive stimulus. The National Bureau of Statistics reported that third-quarter GDP growth surpassed the 4.4% forecast from a Reuters poll and improved from the 4.3% recorded in the previous quarter. On a quarterly basis, GDP grew 1.2%, exceeding the 1.1% forecast.
Industrial output in September increased 5.5% year-on-year, while retail sales rose 1.1%. However, fixed asset investment for January-September fell 7.2% year-on-year, with property investment down 20.6% over the same period.
Analysts noted that while the GDP print beat expectations, growth remains unbalanced, driven by exports and state-led investment rather than self-sustaining domestic demand. The property sector continues to struggle, and the urgency for broad-based monetary easing has lessened, with the focus shifting to fiscal policy.