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China’s economy grew by 4.6 percent year-on-year in the third quarter, as reported by official data on Friday. This growth is slower than that of the preceding quarter, highlighting faltering economic momentum as Beijing intensifies efforts to stimulate the economy.
The growth figure falls short of the government’s full-year target of 5 percent and is less than the 4.7 percent expansion recorded in the three months leading up to June. This slowdown is attributed to weak consumer spending and a downturn in the property market, which have negatively impacted household confidence.
The softer growth figures indicate a need for increased economic support from Beijing, which, in late September, unveiled its most significant monetary stimulus since the onset of the pandemic. This was followed by promises of substantial fiscal expenditure.
China’s markets initially reacted positively to the announcement of monetary stimulus, but have since become cautious as investors await further details regarding the fiscal measures. Although the CSI 300 index of Shanghai- and Shenzhen-listed stocks and Hong Kong’s Hang Seng benchmark have declined in October, both indices remain positive for the year to date.
Efforts by China’s economic planner, finance ministry, and housing ministry to bolster confidence have not met investor expectations. The Hang Seng Mainland Properties index dropped by 6.7 percent on Thursday after the housing ministry’s support for the real estate sector failed to satisfy market expectations.
Authorities have yet to specify the additional fiscal spending, but analysts anticipate that details might be released during an upcoming standing committee meeting of the National People’s Congress, China’s legislative body.
This story is still developing.