China’s Q3 growth narrowly beats forecasts
Beijing is hoping for annual growth of 4.5% to 5% in 2026, its lowest goal in decades.
China's economy expanded 4.5% in the third quarter of 2023, narrowly beating market forecasts, according to figures released by the National Bureau of Statistics. This growth, while better than the 4.3% increase seen in the previous quarter, still fell short of the government's full-year target range of 4.5% to 5%. The improvement was driven largely by robust exports, as the global energy crisis and weak domestic demand worked against stronger performance.
Beijing aims for annual growth of 4.5% to 5% by 2026, its lowest target in decades. Economists are concerned that China may struggle to hit this goal, prompting the government to implement measures such as mortgage subsidies and infrastructure investment support. The Chinese economy's reliance on exports has been bolstered by a surge in overseas shipments, positioning the nation for another record trade surplus potentially exceeding $1.2 trillion.
However, the high cost of energy due to the ongoing Iran war and the persistent real estate crisis have posed challenges, dampening domestic demand. The International Monetary Fund recently downgraded its growth projection for China this year to 4.5%, describing the recent support measures as "limited". Experts argue that China's economy needs a more balanced shift towards domestic consumption, rather than continuing to depend on traditional growth drivers like construction, real estate, and exports.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
