China’s economy grows at a 4.6% rate in the last quarter, falls short of the official 5% target
Associated PressOCT 20 2024
China struggles to meet the government's economic objective of 5% growth. According to new data from China's National Bureau of Statistics, released on Friday, the annual GDP growth rate in the three months to September was only 4.6%, the lowest since early last year.
China's economic growth has missed the 5% threshold for the second quarter in a row due to a housing crisis, poor consumers, and corporate confidence.
These numbers show how fragile the world's second-biggest economy was, prompting Beijing in September to take action, slashing interest rates and boosting property and stock markets, which resulted in a record market surge.
China's economy is expanding and on track to meet its 5% growth target. Despite a slower-than-expected third quarter, growth remains at 4.8% year-over-year. Beijing has taken adequate measures to boost consumer confidence. China can afford to expand at a little slower pace in Q4 than expected while still meeting its full-year growth objective.
The most recent Reuters poll revealed a significantly pessimistic outlook compared to the previous July survey, which predicted 5.0% growth in 2024. The assumption currently is that China will miss its aim, falling to 4.8% and maybe cooling further by 2025. The government is under pressure to implement new stimulus programs, while consumers are hoping for deflationary actions.