China’s National Bureau of Statistics reported a third-quarter GDP growth of 4.6% year on year, slightly higher than the expected 4.5%. This is a drop from the 4.7% growth seen in the second quarter. Other data released, such as retail sales and industrial production, also exceeded expectations, indicating a positive sign for the second-largest economy in the world.
Beijing has been under pressure to meet its annual growth target of around 5%. With the GDP expanding by 4.8% in the first three quarters of the year, experts believe that the target is achievable with additional stimulus in the fourth quarter. Despite challenges, there is optimism about future growth as the government is committed to supporting the economy.
In response to disappointing economic data, Chinese officials have implemented support measures to boost the economy, including reducing the cash reserve requirement for banks by 50 basis points. Additional stimulus measures have been introduced, such as expanding real estate projects and facilitating bank lending. The government has room to increase debt and the deficit to support economic growth.
The latest measures include expanding the “whitelist” of real estate projects and accelerating bank lending to unfinished developments. These actions are aimed at stimulating economic growth amidst low consumer sentiment and challenges in the property sector. The government’s efforts to support the economy and implement stimulus measures are expected to contribute to China’s economic recovery in the coming years.
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