China’s gross domestic product (GDP) grew 4.9% year on year in the third quarter, beating market expectations of 4.5%, as Beijing steps up support for the world’s second-biggest economy.
China’s National Bureau of Statistics said the economy expanded 1.3% on a quarterly basis, up from 0.5% in the April-June period.
The stronger year-on-year growth figures also reflect a comparison with a period of rolling lockdowns last year, before the end of Xi Jinping’s pandemic controls.
The figures got a boost from bumper retail sales growth last month, which recorded the biggest jump since May.
Retail sales rose 5.5% in the year to September, after growing 4.6% in August, and ahead of the 4.9% consensus.
Duncan Wrigley at Pantheon Macroeconomics said “a succession of targeted stimulus measures since August is gaining traction, especially in manufacturing and infrastructure investment, driving demand for materials output.”
“Consumption is recovering, albeit unevenly, with people spending more on services than big items like autos.“
He thinks “China has probably done enough to ensure official GDP growth hits the 'about 5%' target for 2023, despite the feeble property sector, falling exports and people’s worries about their income prospects”.
“The perception of the economy rebounding is likely to buttress private sector confidence, as evidenced by the drop in the household saving rate and green shoots in private business profits and investment.”