China’s economy grew at an annual rate of 4.6% in the third quarter, slightly down from 4.7% in the previous quarter and below the official target of around 5% growth for 2024, AP News reports.
The National Bureau of Statistics described the economy as “generally stable” despite facing external challenges and complicated domestic issues. The economy remains sluggish despite lifting COVID-19 restrictions at the end of 2022, with low consumer confidence and a struggling real estate market. Recent government measures aimed at boosting the economy, such as lowering mortgage rates and easing bank lending, have not yet resulted in significant recovery.
Recent data showed factory output rose by 5.8%, and retail sales grew by 3.3%, but property investment declined by 10.1%, and new home sales dropped by 22.7%. September’s export growth also slowed to 2.4%, down from 8.7% in August, and imports grew just 0.3%.
Chinese banks have reduced deposit rates to stimulate lending, contributing to a rally in Chinese stock markets, with significant gains in both the Shanghai Composite Index and Hong Kong’s Hang Seng Index, although investor sentiment remains cautious due to a lack of substantial government spending initiatives.
