China’s economy grew at a faster-than-expected 6.9% in the third quarter, beating analyst estimates and providing a sign of resilience amid a global economic slowdown.
The growth in the world’s second-largest economy, reported by the National Bureau of Statistics on Monday, was ahead of the 6.7% forecast by analysts and the 6.8% expansion seen in the second quarter.
The data showed that China’s economy has benefited from strong exports and a pickup in infrastructure investment, offsetting weakness in the property sector and a resurgence of COVID-19 cases.
Exports rose 5.7% in U.S. dollar terms in September, the fastest pace since March, boosted by strong demand for Chinese goods from overseas markets.
Infrastructure investment jumped 8.7% in the first nine months of the year, providing a major boost to the economy.
However, the property sector, which accounts for about a quarter of China’s GDP, continued to struggle. Real estate investment fell 8.8% in the first nine months of the year, weighed down by a government crackdown on excessive debt and a slump in home sales.
Consumption, a key driver of China’s economic growth, also remained subdued. Retail sales rose just 2.5% in September, the slowest pace since May 2020.
Despite the challenges, China’s economy is expected to grow by around 3% in 2022, according to the International Monetary Fund. This would be a significant slowdown from the 8.1% growth seen in 2021, but it would still be higher than the global growth forecast of 2.9%.
The Chinese government has introduced a series of measures to support the economy, including fiscal stimulus, monetary easing, and infrastructure spending. It has also eased some of the restrictions on the property sector.
However, analysts caution that China’s economic recovery faces a number of headwinds, including the global economic slowdown, geopolitical tensions, and a resurgence of COVID-19 cases.
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