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China Q3 GDP growth rebounds at faster pace but risks loom
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People walk on a street in Shanghai, China, on Oct. 16, 2022. (Reuters/Aly Song)
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hina's economy rebounded at a faster-than-expected pace in the third quarter, but strict COVID curbs, a deepening property crisis and global recession risks are challenging Beijing's efforts to foster a robust revival over the next year.
Gross domestic product (GDP) in the world's second-biggest economy rose 3.9 percent in the July-September quarter year-on-year, official data showed on Monday, above the 3.4 percent pace forecast in a Reuters poll of analysts, and quickening from the 0.4 percent pace in the second quarter.
The data was originally scheduled for release on Oct. 18 but was delayed until after the Communist Party Congress which took place last week and saw Xi Jinping secure a precedent-breaking third leadership term and introduce a governing body stacked with loyalists.
Despite the rebound, the economy is facing challenges on multiple fronts at home and abroad. China's zero-COVID strategy and strife in its key property sector have exacerbated the external pressure from the Ukraine crisis and a global slowdown due to interest rate hikes to curb red-hot inflation.
A Reuters poll had forecast China's growth to slow to 3.2 percent in 2022, far below the official target of around 5.5 percent, marking one of the worst performances in almost half a century.
On a quarterly basis, GDP rose 3.9 percent in the third quarter, versus a forecast 3.5 percent gain and a 2.6 percent decline in the previous quarter.
Policymakers had rolled out over 50 economic support measures since late May, seeking to bolster the economy to ease job pressures, even though they have played down the importance of hitting the growth target, which was set in March.
New bank lending in China nearly doubled in September from the previous month and far exceeded expectations, thanks to central bank efforts to revive the economy.
Separate data showed industrial output in September rose 6.3 percent from a year earlier, beating expectations for a 4.5 percent gain and 4.2 percent in August.
But retail sales remained weak, rising 2.5 percent, worse than expectations for 3.3 percent rise and 5.4 percent growth in August.
