China's Economic Growth Accelerates to 4.5% in Q3, Supported by Exports

China announced yesterday that its gross domestic product grew by 4.5% during the third quarter (July–September), surpassing expectations and keeping it on track to meet its official annual target as the year draws to a close, even as its trading partners feel an urgent need to reduce their trade deficits with China.

The official data came in better than expected, recording a new acceleration, following a 4.3% growth rate in the April–June period, which had been the slowest pace in more than three years. A surge in exports and robust factory activity offset continued weakness in domestic demand, easing pressure on policymakers to introduce stronger stimulus measures.

The third-quarter GDP growth rate, released yesterday by the National Bureau of Statistics, exceeded the 4.4% growth forecast in a Reuters poll and improved from the lowest level in over three years, which stood at 4.3% in the April–June period.

Strong growth in the key indicator was supported by rising exports, as China’s trade surplus widened more than expected in September, keeping the country on track to surpass the record surplus of $1.2 trillion recorded last year.

For the full year, Chinese leaders have set an economic growth target ranging between 4.5% and 5%, down from last year’s growth rate of 5%. Earlier this month, the International Monetary Fund lowered its forecast for China’s economic growth this year to 4.5%, aligning with the lower end of the government’s target range.