China Q3 GDP grows 4.5%, slightly more than expected

China's economy expanded slightly above forecasts in the third quarter of 2026, bolstered by robust exports and heightened demand for artificial intelligence technology. The country's Gross Domestic Product rose 4.5% year-on-year, according to National Bureau of Statistics data released on Monday. This figure exceeded expectations of a 4.4% increase and represented a 0.2% acceleration from the previous quarter's 4.3% growth.

Q3 GDP expanded 1.2% quarter-on-quarter, surpassing the 1.1% expectation and also marking a 0.3% pace-up compared to the prior period. The first three quarters of 2026 saw GDP growth amount to 4.6%, staying within Beijing's targeted range of 4.5% to 5%.

Industrial production and export demand, particularly for specialty materials and components utilized in data centers and semiconductors, played a significant role in driving growth. However, consumer spending remained sluggish despite ongoing support from Beijing. The autumn festival holidays in September provided some respite. The latest data suggested that China's economy remained robust in key sectors such as industrial production and exports, which counterbalanced sluggish private spending and the housing market.

Nevertheless, GDP growth has been gradually decelerating from previous years. Although continued stimulus measures from Beijing provided some assistance, its impact appeared limited.