The Chinese Economy Grew 4.9% in Q3, But Below Expectations

China’s economic recovery accelerated in the third quarter of the year as consumers abandoned caution about the Coronavirus, but the main below-expected growth rate foretells continued risks to one of the few drivers of global demand.

Official data revealed on Monday that gross domestic product (GDP) grew 4.9% from July to September, slower than analysts’ expectations in a Reuters poll, which had growth of 5.2% but faster than the pace of growth in Q2 of 3.2%.

The Office for National Statistics said the world’s second-largest economy grew 0.7% in the nine months of the year compared to a year ago.

Compared to the previous quarter, gross domestic product rose 2.7% in the Q3, compared to expectations for a 3.2% growth and an 11.5% rise in the previous quarter.

Retail sales grew 3.3% in September compared to a year ago, accelerating from a 0.5% increase in August and the fastest pace of growth since December 2019. Industrial output increased by 6.9% after rising 5.6% in August, showing that the sector’s recovery is gaining ground. Momentum.

Fixed-asset investment rose 0.8% year-on-year in the first nine months, posting year-on-year growth for the first time this year.

In the real estate sector, investment grew 12% year-on-year in September, the fastest pace in about a year and a half, which provided important support for investment in general.