China's economy grows 4.5%, beating expectations
What's the story
China's economy grew by 4.5% year-on-year in the third quarter, surpassing market expectations of 4.4%. The growth rate also marks a recovery from a more than three-year low of 4.3% in the previous quarter. The data was released by the National Bureau of Statistics (NBS) on Monday, showing an improvement over April-June's period and easing pressure on policymakers to announce further stimulus measures to meet their annual target of 4.5%-5%.
Economic performance
China's economy expanded by 4.6% between Q1-Q3
China's economy expanded 4.6% in the first nine months of 2026, within the government's annual growth target range.
On a quarterly basis, the economy grew by 1.2% in Q3, beating expectations of a 1.1% rise and accelerating from April-June's period.
However, this growth comes as China faces weak domestic demand and trade tensions with the European Union (EU).
Trade and industry
Industrial output expanded by 5.5% in September
China's trade surplus widened more than expected in September, with exports surging.
This puts the country on track to exceed last year's record surplus of $1.2 trillion and likely intensifying trade tensions with major partners.
Industrial output also expanded by 5.5% in September, accelerating from August's growth rate of 5.2%, marking the quickest growth in six months despite weak consumption and private investment at home.
Market fluctuations
Retail sales grew by 1.1% in September
Retail sales grew by 1.1% in September, an improvement from August's 0.4% rise and beating expectations of a 0.6% increase.
However, property investment fell by 20.6% in the first nine months of the year, continuing a downward trend from January-August's period.
Policymakers have refrained from large-scale stimulus measures as strong goods exports, driven by a global AI-fueled tech boom, should help China meet its annual growth target.