China’s economic growth accelerated to an annualized rate of 4.5% in this year’s third quarter as exports from the country of 1.4 billion people surged.
Strong foreign demand for China’s products largely offset weakness in the domestic economy, which continues to suffer from a declining property market and sluggish consumer spending.
Third-quarter growth beat the consensus expectations of economists, who were forecasting a 4.4% annualized expansion.
China’s economy grew at a three-year low of 4.3% in this year’s second quarter.
The third-quarter rebound was driven by China’s monthly trade surplus, which reached a record high of $133.5 billion U.S.
China’s government is now forecasting a full-year growth rate of 4.7% for the economy. Growth through the first nine months averaged 4.6%, in line with Beijing’s official target of 4.5% to 5%.
The government in Beijing has relied on exports for growth this year, but that engine has faced pressure as energy prices have surged.
China’s domestic economy remains historically weak due to soft consumption patterns and a slump in the real estate market.
Economists polled by Reuters (TRI) expect China’s central bank to hold interest rates at current levels for the remainder of this year, leaving government fiscal measures to do most of the work.
China’s government has stepped up fiscal support in recent weeks, including mortgage subsidies to try and boost the property market and bolster infrastructure spending.
