China's economy picks up pace in Q3 as exports power uneven recovery

Beijing — China's economy demonstrated a more robust growth rate in the third quarter than initially anticipated, with exports and factory activity playing a crucial role in offsetting weak domestic demand. This favorable development has relieved policymakers from the need to implement more aggressive stimulus measures. The National Bureau of Statistics (NBS) reported on Monday that China's economy expanded by 4.5% in Q3, surpassing the 4.4% growth forecast from a Reuters poll and marking an improvement from the 4.3% growth rate in the April-to-June period.

The more impressive growth figures were driven primarily by a significant surge in exports, which led to a widening of China's trade surplus beyond expectations in September. This positive trend has kept the nation on course to exceed the previous year's record $1.2 trillion surplus. The improvement in industrial output also contributed to the stronger growth, with September activity showing a more substantial increase in retail sales, climbing 1.1% year-over-year, compared to August's 0.4% rise.

However, overall consumer spending remained relatively stagnant, underscoring the uneven nature of China's economic recovery.