19 Oct 2016
China GDP grows 6.7% in third quarter, in line with expectations
China’s economy grew 6.7 percent in the third quarter from a year earlier, steady from the previous quarter and in line with market expectations.
While fears of a hard landing have eased this year, recent economic figures have also highlighted growing imbalances in the world’s second-largest economy, with growth increasingly dependent on government spending and ballooning debt as private investment tumbles to record lows, Reuters reports.
Nonetheless, the latest economic data has all but ensured that the government’s full-year growth target of 6.5 to 7 percent will be achieved, Bloomberg said.
The economy expanded 6.9 percent in 2015, the slowest pace in a quarter of a century.
Analysts polled by Reuters had predicted gross domestic product (GDP) would grow 6.7 percent in the July-September period, unchanged from the second quarter and the first quarter.
The economy grew 1.8 percent from the previous quarter, the National Bureau of Statistics said on Wednesday, in line with market forecasts and compared with revised 1.9 percent quarterly growth in the second quarter.
According to Bloomberg, the GDP growth figure gives room for the government to implement policies aimed at containing swelling debt and curbing excessive financial risks.
Industrial output increased 6.1 percent from a year earlier in September, compared with analyst’s median projection for a 6.4 percent rise.
Meanwhile, retail sales rose 10.7 percent last month from a year earlier, matching economists median forecast.
Fixed-asset investment increased 8.2 percent in the first nine months, matching the forecast by analysts.
Many uncertain factors in the economy remain and that the foundation for sustained growth is not solid, Reuters quoted the statistics bureau as saying in a statement.
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