Previous Story
Chinese GDP beats forecasts in Q3 at 6.9 percent
GDP growth in China beat forecasts for the third quarter. According to China’s statistics bureau data that were released on Monday, GDP expanded 6.9 per cent in Q3 in inflation-adjusted terms.
While this was down from 7 per cent in the first two quarters and 7.3 per cent for full-year 2014, it was higher than expectations of 6.7 per cent. Resilient growth in the emerging services sector helped compensate for weakness in manufacturing and property.
But it was the slowest quarterly growth rate since the first quarter of 2009. “Today’s number probably represents a floor for how bad it can get in terms of GDP growth in China. On the back of more policy easing and some cyclical recovery, we should see a rebound in the fourth quarter,” said Julia Wang, greater China economist at HSBC.
Monday’s data suggests that China is broadly on course to meet the full-year growth target of “around 7 per cent” that Premier Li Keqiang announced in March. The spokesman for The National Bureau of Statistics said last month that he believed growth as low as 6.5 per cent would be within the target range.
While manufacturing and property have slowed for more than a year, financial services provided a temporary boost to growth earlier in 2015 as brokerages raked in commissions from the stock market boom. That led to expectations that growth would correct downward in the third quarter after the Chinese stock market fell by a third from late June.
Yet real GDP growth from services held steady the first three quarters at 8.4 per cent, unchanged from the first half.
The post Chinese GDP beats forecasts in Q3 at 6.9 percent appeared first on Forex Circles.
