China's economy grew 4.5% in the previous quarter, better than forecasts

China's economy expanded by 4.5% in the July-September quarter of 2022, surpassing market forecasts and moving closer to its official annual growth target, according to official data released on Monday. This figure marked a notable improvement from the 4.3% growth recorded in the April-June period, the slowest expansion in over three years.

Chinese leaders have targeted an annual growth rate of 4.5%-5% for the year, which has been lowered from last year's 5% expansion rate. Earlier this month, the International Monetary Fund reduced its forecast for China's 2022 economic growth to 4.5%, just meeting the lower end of Beijing's goal.

One of the contributing factors to the weaker domestic demand is the prolonged downturn in the country's property market, which has put pressure on household wealth and led to increased savings. Despite this challenge, China's strong exports continue to be a bright spot. In September alone, exports grew by 36%, and the country has already achieved an $938 billion surplus in trade between January and September of the current year.

This surge in exports has raised concerns among many of China's trade partners, who fear that the influx of lower-cost Chinese manufactured goods may put pressure on their domestic industries and economies.