China reports third-quarter GDP grew by 3.9%, beating expectations

Shipping containers are stacked at the port of Zhangjiagang on October 21, 2022.

Visual Group China | Getty Images

BEIJING — China reported Monday that third-quarter gross domestic product rose 3.9% from a year ago, beating expectations.

The data was originally scheduled to be released on October 18, but was delayed late October 17 without explanation. The Chinese Communist Party held its 20th National Congress from October 16 to 22.

Analysts polled by Reuters before Oct. 18 had expected China to post 3.4% GDP growth for the third quarter.

The official 3.9% year-on-year growth for the third quarter marked a recovery from 0.4% in the second quarter, bringing year-to-date growth to 3%.

This is still well below the official target of around 5.5%.

Covid controls on business activity, particularly in the second quarter of the year, weighed on growth and prompted many investment banks to cut their full-year guidance to around 3%.

Learn more about China from CNBC Pro

Retail sales rose 2.5% in September from a year ago, slowing from August and missing expectations by 3.3% according to the Reuters poll.

The urban unemployment rate reached 5.5% in September. That of 16 to 24 year olds remains well above 17.9%.

Industrial production rose 6.3%, well above the 4.5% rise expected by Reuters.

Investment in fixed assets rose 5.9% in the first three quarters of the year, slightly below Reuters’ forecast of 6%.

Investment in real estate fell 8% during this period, which is higher than the 7.4% year-on-year decline recorded in the first eight months of the year.

Year-to-date, infrastructure investment accelerated growth to 8.6% year-on-year in September from 8.3% in August. That of the manufacturing sector was more or less at the same rate.

This is breaking news. Please check for updates.

Leave a Comment

Your email address will not be published. Required fields are marked *