China’s economy expands 6.7% in Q3

According to media reports, the Chinese economy expanded 6.7% in the third quarter compared to last year, unchanged from the first and second quarters. The recent growth rate is in line with economists’ expectations which called for stabilization in the growth rate for Q3.

The steady trend in the Chinese economy was attributed to an upsurge in the property market and rising government spending despite the weak exports.

It is reported that real estate investment growth rose 5.8% in the January-September period, posting a slight increase from 5.4% in the January-August period. Plus, consumption made a 71% contribution to the economic growth in the first three quarters of 2016 from the 66.4% contribution in 2015, according to official data.

Data released by the National Bureau of Statistics showed that the economy grew 1.8% on a quarterly basis from a revised 1.9% growth on the quarter in Q2. The government’s growth target has been determined between 6.5-7% on a yearly basis.

The Chinese economy had grown 6.9% last year, showing the slowest growth in twenty five years.
Despite the continued growth in 2016, risks remain from falling private investment, rising debt levels and the potential for a property market correction.