China's economy has grown by 4.6% in the first nine months of the year. Third-quarter GDP rose 4.5% compared with last year as industrial output was buoyed by electronics demand. This was reported by Qazaqyia.kz citing The Guardian.

Exports drive growth

China's GDP grew by 4.5% year-on-year between July and September, the National Bureau of Statistics of China reported on Monday. The figures were better than economists had expected and up from the second quarter's growth rate of 4.3%.

China's economy has now grown by 4.6% in the first nine months of the year, putting it on track to hit the government's 2026 target of 4.5%-5% growth without extra stimulus measures.

Industrial production rose 5.5% in September, up from 5.2% in August, while retail sales only increased 1.1%, up from 0.4%.

Expert commentary

Duncan Wrigley, the chief China economist at Pantheon Macroeconomics, said Beijing's policymakers were likely to conclude that their efforts to stabilise headline growth in the third quarter were successful.

"Headline industrial production rose in September partly as coalmines resumed operations after safety inspections prompted by a major accident. Manufacturing output growth remained robust at 6.0% year on year in September, buoyed up by stronger export demand for electronics, AI-related equipment and autos," Wrigley said.

"Hi-tech manufacturing output continues to outperform traditional sectors, as China climbs the value-added ladder," Wrigley added.

Investment and construction weak

However, fixed-asset investment fell 7.2% over the first nine months, property investment tumbled by 20.6%, and infrastructure spending remained weak.

Data last week showed that China's exports surged by more than a third in September, lifted by a rise in shipments of electronics related to AI.

"This pickup in GDP growth mainly reflects ongoing export strength on the global AI/tech boom, more than offsetting drags from the Iran conflict and ongoing weakness in domestic demand," said analysts at ABN Amro.

Overall, China's economy is showing growth driven by external trade, while domestic consumption and investment activity remain weak. The government's key challenge is to revive domestic demand to sustain growth.