China’s National Bureau of Statistics reported that the country’s GDP grew by 4.6% year on year in the third quarter of 2021, slightly exceeding expectations. The 0.9% quarterly expansion in the third quarter also improved from the previous quarter. Other economic indicators such as retail sales and industrial production also beat expectations, indicating positive signs for the world’s second-largest economy.
Beijing has faced scrutiny over meeting its annual growth target of around 5%, but with the GDP expanding by 4.8% in the first three quarters, the target is now within reach. The government has implemented stimulus measures to support economic growth, with further support expected in the fourth quarter. Despite challenges, the Chinese economy is not beyond repair, and there is optimism for growth in the coming years.
Recent measures include reducing the cash reserve requirements for banks by 50 basis points, as well as increasing debt and the deficit to support the economy. The government is also focusing on the real estate sector, with the Housing Ministry expanding a “whitelist” of projects and increasing lending for unfinished developments to boost the sector. Overall, there are efforts to stimulate economic growth and address challenges to ensure the stability and growth of the Chinese economy in the future.
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