China’s economy expanded by 4.5% year-on-year in the third quarter (July–September 2026), according to data released by the National Bureau of Statistics on Monday (October 19, 2026). This figure showed a slight improvement from the previous quarter's 4.3% growth and narrowly beat the 4.4% expansion predicted in an AFP economist poll. However, the performance remains at the lower end of Beijing's full-year target of 4.5% to 5.0%.
While an AI-fueled surge in exports has continued to drive economic momentum—putting the country on track to surpass last year's $1.2 trillion trade surplus—persistent challenges from a prolonged real estate crisis, weak consumer sentiment, and global energy shocks driven by the Iran war have dampened overall growth. Retail sales rose by 1.1% last month, marking the fastest pace since March.
Despite these figures, the International Monetary Fund (IMF) recently downgraded its full-year growth projection for China to 4.5%, noting that Beijing's recent support measures remain limited and emphasizing the urgent need for structural rebalancing toward domestic consumption.
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Reported by National Desk • Edited by the Daily Best News desk. Send corrections to [email protected].
