China’s economy grows at a 4.6% rate in the last quarter, falls short of the official 5% target
Associated PressOCT 20 2024
According to new data from China's National Bureau of Statistics, released on Friday, the nation's annual gross domestic product (GDP) growth rate in the three months to September was 4.6%, the lowest since early last year.
Though this rate missed the 5% threshold for the second quarter in a row, it beat market expectations of 4.5%.
This comes as Beijing announced a series of measures in September, including slashing interest rates and dropping mortgage rates, which resulted in a record market surge.
This latest data paints a significantly pessimistic outlook compared to a July survey, which predicted 5.0% growth in 2024. The assumption currently is that China will miss its aim, falling to 4.8% in 2024 and maybe cooling further by 2025. The government is under pressure to implement new stimulus programs, while consumers are hoping for deflationary actions.
Despite a slower third quarter, China's economy still beat estimates and is on track to meet its 5% growth target. Economic growth remains at 4.8% year-over-year, and Beijing has taken adequate measures to boost consumer confidence. China can afford to expand at a slightly slower pace in the third quarter while still meeting its full-year growth objective.