Overview of China's Q3 Economic Performance
China's economy recorded a 4.6% year-on-year growth in the third quarter of 2024, slightly surpassing the 4.5% forecast from a Reuters poll but down from 4.7% in Q2. The latest data highlights the ongoing struggle of the world’s second-largest economy, particularly due to a tumbling property sector that continues to impede recovery efforts.
Key Economic Indicators
- GDP Growth: Q3 GDP rose by 0.9% quarter-on-quarter, below the forecast of 1.0%.
- Industrial Output: September saw an increase of 5.4% year-on-year, beating expectations of 4.5%.
- Retail Sales: Retail sales grew by 3.2% in September, outperforming the 2.5% forecast.
- Property Investment: A significant decline of 10.1% year-on-year in property investment reflects ongoing challenges.
Market Reaction and Expert Commentary
Following the data release, the CSI300 Index fell by 0.4%, and the Shanghai Composite Index dropped by 0.33%. Experts like Toru Nishihama from Dai-ichi Life Research Institute emphasized that excess supply and lack of demand are pressing issues. Meanwhile, Alvin Tan of RBC Capital Markets pointed out that the data, although better than expected, indicates decelerating growth trends.
Looking Ahead
Despite recent stimulus measures, analysts predict that achieving the government’s 5% growth target may be challenging without substantial fiscal policies. As China navigates structural issues like high debt and an aging population, investors are eagerly awaiting clearer fiscal strategies to stabilize the economy


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