China’s economy grew 4.6% year-on-year in the third quarter, slower than in the previous three months, official data showed on Friday. The figures underscore that growth has stalled, despite Beijing stepping up efforts to revive the economy.
The 4.6% growth rate falls short of the government’s full-year target of 5% and is slightly lower than the 4.7% expansion recorded in the second quarter. Sluggish consumption and a property market slump have weighed on household sentiment, contributing to the weaker performance.
This slower growth highlights the need for further economic support from Beijing. In response, the government announced its largest monetary stimulus package since the financial crisis at the end of September, followed by commitments to substantial fiscal spending.
While Chinese markets initially responded positively to the monetary stimulus, investor caution remained as they awaited more details on fiscal measures. In October, both the CSI 300 Index of shares traded in Shanghai and Shenzhen, as well as Hong Kong’s benchmark Hang Seng Index, experienced declines.
Efforts by the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Housing to boost investor confidence fell short of expectations. On Thursday, the Hang Seng Mainland Properties Index dropped 6.7% after the Ministry of Housing’s proposed support for the property sector disappointed the markets.
The government has yet to finalize the amount of additional fiscal spending, but analysts anticipate an announcement could come in the coming weeks, possibly during a meeting of the Standing Committee of China’s National People’s Congress.
