China's Economy Posts 4.5% Growth in Q3 This Year; Domestic Demand and the Property Market Remain Mired in a Slump

[Financial News] China's economy recorded 4.5% growth in the third quarter of this year. The figure exceeded market forecasts, reaffirming that the economy's growth momentum has not faltered.
Rising exports of electronics and components, driven by increased investment related to artificial intelligence (AI), offset weak household consumption and the downturn in the property market.
However, the property market has been unable to emerge from its slump, and weak consumption means that reviving domestic demand remains a challenge.
China's National Bureau of Statistics (NBS) announced on the 19th that gross domestic product (GDP) grew 4.5% in real terms, excluding price changes, from a year earlier in the third quarter.
The growth rate was up 0.2 percentage points from 4.3% in the second quarter (April-June), and exceeded the market forecast of 4.4% by 0.1 percentage points. This was at the lower end of the 4.5%-5.0% growth target set by Xi Jinping's government for this year. With third-quarter growth within the target range, Chinese authorities have been spared some of the pressure to roll out aggressive stimulus measures in the fourth quarter.
Stark polarization was evident: compared with production and exports, consumption and private investment lagged, underscoring the coexistence of a growth model reliant on production and overseas demand and a slump in domestic demand.
China's industrial production rose 5.3% year on year in January-September. Manufacturing and high-tech industries posted strong growth, with equipment manufacturing up 10.2% and high-tech manufacturing up 14.3%.
By product, output of 3D printer equipment surged 62.5%, while production of lithium-ion batteries and industrial robots also rose sharply, by 39.5% and 29.1%, respectively.
Industrial production rose 5.5% in September from a year earlier. The growth rate was up 0.3 percentage points from 5.2% in August, reaching a six-month high.
Exports, along with industrial production, supported growth. Exports in dollar terms rose 28% in the third quarter from the same period a year earlier. Overseas shipments of electric vehicles, solar power generation equipment and semiconductor-related products were strong.
September retail sales, an indicator of consumption, rose 1.1% from a year earlier, marking only a slight recovery.
Total fixed-asset investment fell 7.2% year on year in January-September. Real estate development investment dropped 20.6% over the same period, remaining mired in a slump. New home sales fell 13.2% by floor area and 13.9% by value.
China is expected to set a new all-time high for its trade surplus this year, following last year's record of $1.1889 trillion. However, resolving disputes with trading partners, including the European Union (EU), will remain a challenge.

[email protected] Lee Seok-woo, International Affairs Specialist Reporter