Update | China’s economy posts steady growth of 6.7 per cent in third quarter, but growing headwinds expected
GDP expands at same rate as in previous two quarters, with investment in real estate gaining steam
China’s economy expanded 6.7 per cent from July to September, the same rate as in the previous two quarters, the government’s statistics agency said on Wednesday.
The figures will help ensure Beijing can achieve a minimum 6.5 per cent economic growth rate this year, reducing the need to roll out short term stimulus measures.
Economists, however, are expecting growing headwinds for China’s economy over the coming year, with curbs imposed on the housing market and signs of weaker growth in industrial output.
The growing expectation of an interest rate increase by the US Federal Reserve in December has also added momentum to capital outflows out of China and poses challenges for economic policymakers, analysts said.
Zhou Jingtong, a senior researcher at the Bank of China, said the stabilisation in China’s economy came as no surprise and that it was mainly boosted by the recovering housing market, pro-growth measures implemented earlier this year and the pick-up in global commodities prices.