China’s economy grew at the slowest pace since early last year in the three months to the end of September, as the country struggles to boost flagging growth.
However, that was slightly better than analysts expected, while other official figures released on Friday, including retail sales and factory output, also beat forecasts.
“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.
“The property market unsurprisingly remains the biggest drag on China’s growth,” said Lynn Song, chief economist for greater China at banking giant ING.
The world’s second largest economy has been hit by a number of challenges, including a property crisis, as well as weak consumer and business confidence.
In the three months ending at the end of September, China’s economy expanded at its slowest rate since early in the year as the nation tries to revive its faltering growth.
China’s National Bureau of Statistics reports that the GDP increased by 4 points 6 percent annually, less than the government’s “around 5 percent” annual target.
That was, nevertheless, marginally better than analysts had anticipated. Retail sales and factory output, two other official figures released on Friday, also exceeded projections.
Beijing has announced several policies aimed at promoting growth in recent weeks.
The official gauge of China’s economic growth has dropped short of the 5 percent target for the second quarter running, which will increase worries among the government.
The previous head of the International Monetary Fund’s (IMF) China division, Eswar Prasad, told BBC News that “the government’s growth target for this year now appears in serious jeopardy.”.
“To reach the goal, growth in the fourth quarter will need to be significantly boosted by stimulus spending. “. .
The slowdown in China’s new home market accelerated in September, according to official data, marking the worst month for the sector’s decline in nearly a decade.
Lynn Song, chief economist for greater China at banking behemoth ING, stated, “Unsurprisingly, the property market continues to be the biggest drag on China’s growth.”.
“Until prices stabilize and housing inventories decrease, new investment is unlikely to see a significant recovery. Real estate will continue to be a significant growth hindrance until then. “.”.
Prior to this, China’s central bank announced that it convened a meeting and exhorted banks and other financial institutions to increase lending in order to bolster economic expansion.
The People’s Bank of China (PBOC) unveiled last month the largest stimulus package the nation has seen since the pandemic, which included significant reductions in mortgage and interest rates.
The plans also included steps to encourage banks to lend more to individuals and businesses, as well as assistance for the faltering stock market.
Subsequently, additional plans to accelerate economic growth have been revealed by the Ministry of Finance and other government agencies.
A property crisis, low consumer and business confidence, and other issues have all affected the second-biggest economy in the world.
