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Gross domestic product increased at an annual rate of 4.6%, falling below the government’s annual target of “approximately 5%.”
China’s economy expanded at its slowest pace since early last year in the third quarter as it struggled to boost sluggish growth.
China’s gross domestic product (GDP) grew at an annual rate of 4.6% in the three months to the end of September, according to China’s National Bureau of Statistics. This is lower than the previous quarter and also below the government’s target of “about 5%” for this year.
But it slightly beat analysts’ expectations, and other official figures released on Friday, including retail sales and factory output, also beat expectations.
In recent weeks, the Chinese government has announced a number of measures aimed at supporting growth.
China’s official economic growth rate has fallen below the target of 5% for the second consecutive quarter, adding to the government’s concerns.
“The government’s growth targets for this year now appear to be in serious jeopardy,” Eswar Prasad, former head of the International Monetary Fund’s China division, told BBC News.
“Achieving the target will require a significant boost to growth through stimulus in the fourth quarter.”
But Moody’s Analytics economist Harry Murphy Crews was more optimistic. He said the stimulus package is “likely to push the economy to around 5% of our target for this year.”
“But more needs to be done for authorities to address the economy’s structural challenges.”
Official figures also showed that new home prices fell at the fastest pace in almost a decade in September, further showing that the slump in the property sector is deepening.
“It’s no surprise that the real estate market remains the biggest obstacle to China’s growth,” said Lin Song, chief economist for Greater China at banking giant ING.
“New investment is unlikely to recover significantly until prices stabilize and housing inventory declines. Until then, real estate will remain a significant headwind to growth.”
The People’s Bank of China said early Friday that it had held a meeting with banks and other financial institutions to ask them to expand lending to support growth.
Last month, the People’s Bank of China announced its biggest economic stimulus package since the pandemic, including sharp cuts in interest rates and mortgage rates.
The plan also includes measures to support struggling stock markets and encourage banks to increase lending to businesses and individuals.
Since then, the Ministry of Finance and other government agencies have announced further plans aimed at boosting economic growth.
The world’s second-largest economy has been hit by a number of challenges, including a real estate crisis and weak consumer confidence and business confidence.
