NEWS · 23/10/2024

China’s economic slowdown deepens

Getty Images A worker works on the production line of a wind power equipment manufacturing enterprise in Baishui County, Weinan, China, on 16 October, 2024.Getty ImagesGross domestic product rose by 4.6% on a yearly basis, below the government's "around 5%" annual targetChina's economy expanded in the third quarter at the slowest pace since early last year, as the country struggles to boost flagging growth.
On an annual basis, gross domestic product (GDP) rose by 4.6% in the three months to the end of September, according to China's National Bureau of Statistics.
That is less than the previous quarter and below the government's "around 5%" target for this year.
But it was slightly better than analysts expected, while other official figures released on Friday, including retail sales and factory output, also beat forecasts.
In recent weeks, Beijing has announced a number of measures aimed at supporting growth.
This is the second quarter in a row that China's official measure of economic growth has fallen below the 5% target, which will add to government concerns.
"The government’s growth target for this year now appears in serious jeopardy," the former head of the International Monetary Fund's (IMF) China division, Eswar Prasad told BBC News.
"It will take a substantial stimulus-fuelled boost to growth in the fourth quarter to hit the target."
But Moody's Analytics' economist, Harry Murphy Cruise, was more optimistic. The stimulus measures are "likely to propel the economy to its around 5% target for the year", he said.
"But more is required if officials are to address the structural challenges in the economy."
Official figures also showed new home prices fell in September at the fastest pace in almost a decade, indicating that the downturn in the property sector is worsening.

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