China Q3 Economic Growth Rises to 4.5% Amid Strong Exports
China’s economy grew by 4.5% in the third quarter, up from a three-year low of 4.3% in the previous quarter and exceeding expectations of 4.4%. The growth was driven primarily by strong exports, particularly for technological goods, which offset challenges such as a deepening property market slump and weak consumer demand. Despite this improvement, domestic sectors remain under pressure: fixed asset investment declined 7.2% year-on-year in the first nine months of 2026, while real estate development saw an even sharper drop at -20.6%. Retail sales grew modestly by just 1.1%, and although industrial output rose to match forecasts (5.5%), broader economic imbalances persist. Economists suggest that the government may continue a passive approach rather than injecting stimulus, as domestic demand remains weak and external pressures mount from rising energy costs and trade tensions.
Topics: China economic growth industrial output retail sales unemployment