China’s economy grew 4.6% in July-September quarter, falling short of 5% target

Workers monitor the production line of drip tape fittings at a factory of DAYU Water Group Co, in Jiuquan, during an organised media tour in Gansu province, China October 18, 2024.
| Photo Credit: REUTERS

China’s economy expanded at a slower-than-expected rate of 4.6% in the July-September quarter, the government said Friday (October 18, 2024).

The latest data show the world’s second largest economy slowing from 4.7% annual growth in the previous quarter and falling short of the official target of “about 5%” growth for 2024, a figure that analysts consider ambitious without more aggressive measures to spur consumer demand and spur a recovery in the ailing property sector.

In a statement, the National Bureau of Statistics said that the economy was “generally stable with steady progress” even in the face of a “complicated and severe external environment” and complicated domestic economic development.

The economy has remained sluggish despite the lifting of COVID-19 restrictions at the end of 2022. Consumer confidence is low and the real estate market remains a drag on the economy.

Chinese policymakers have in recent weeks announced a wave of measures aimed at boosting the economy, including reducing mortgage rates for existing homes and allowing banks to lend more by reducing reserve requirements.

But Beijing has so far stopped short of unveiling major new stimulus plans that analysts and stock investors believe is needed to give the economy a major boost.

China’s growth rate in the first three quarters of the year was 4.8%. On a quarterly basis, the economy expanded 0.9% in the quarter that ended in September, up from 0.7% growth in the previous quarter.

For the first three quarters, China’s factory output rose 5.8%, while retail sales expanded 3.3% compared to the same period last year. However, property investment sank 10.1% and the value of new home sales plunged 22.7%, underscoring weakness in the housing sector.

Earlier this week, China reported its September exports slowed sharply, rising just 2.4% in dollar terms from a year earlier, down from 8.7% year-on-year growth in August. Imports were also weak, growing just 0.3% and missing estimates.