China’s economy grew by 4.6% in the July-September quarter, falling short of the 5% target

Workers monitor the production line of drip tape fittings at a factory of DAYU Water Group Co, in Jiuquan, during an organized media tour in Gansu province, China, October 18, 2024. | Photo credit: REUTERS

China’s economy grew slower than expected at 4.6% in the July-September quarter, the government said on Friday (Oct 18, 2024).

The latest data shows the world’s second-largest economy is slowing from the previous quarter’s annual growth of 4.7%, falling short of the official target of “around 5%” growth for 2024, a figure that analysts see as ambitious without more aggressive measures to stimulate consumer demand and spur a recovery in the ailing real estate sector.

In a statement, the National Bureau of Statistics said the economy was “generally stable with steady progress,” even despite a “complicated and severe external environment” and complicated domestic economic development.

The economy has remained sluggish despite the lifting of COVID-19 restrictions at the end of 2022. Consumer confidence is low and the real estate market remains a drag on the economy.

Chinese policymakers have announced a wave of measures in recent weeks aimed at boosting the economy, including lowering mortgage rates on existing homes and allowing banks to lend more by reducing reserve requirements.

But Beijing has so far not unveiled major new stimulus plans that analysts and stock investors say are needed to give the economy a major boost.

China’s growth rate in the first three quarters of the year was 4.8%. On a quarterly basis, the economy grew 0.9% in the quarter ended September, compared with 0.7% growth in the previous quarter.

During the first three quarters, Chinese factory output rose 5.8%, while retail sales increased 3.3% compared to the same period last year. However, real estate investment fell by 10.1% and the value of new home sales fell by 22.7%, underscoring the weakness in the housing sector.

Earlier this week, China reported that exports slowed sharply in September, rising just 2.4% in dollar terms from a year earlier, down from 8.7% annual growth in August. Imports were also weak: growth was only 0.3% and expectations were lacking.