China's Economy Grows 4.8% in Q3 Amid Real Estate Challenges

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China's Economy Grows 4.8% in Q3 Amid Real Estate Challenges
Photo: Vincent Thian AP/TT

China's growth in the third quarter has been measured at 4.8 percent by the country's statistics bureau. It was slightly more than expected. But the real estate crisis is still plaguing the economy and investments were unexpectedly weak.

According to the statistics bureau, this means that a "solid foundation" has now been laid to reach the growth target of 5 percent for the full year 2025.

The figures – which can be compared to an average forecast among analysts of 4.7 percent according to Bloomberg – come ahead of Chinese leaders meeting in Beijing this week to start drawing up the next five-year plan.

However, retail sales slowed down to the lowest growth rate since November last year and investments in fixed assets contracted for the first time since the pandemic year 2020.

What drove up growth was industrial production, which increased by 6.5 percent in September.

The four-year crisis in China's real estate sector continues at the same time. Prices for new homes in Chinese major cities fell 0.4 percent in September compared to August, the largest decline in eleven months. The price decline was even greater for existing homes.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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