Economy

Chinese GDP was 7.8% in Q3

Written by Sandy Williams


The Chinese economy grew 7.8 percent in the third quarter, compared to 7.5 percent in the second quarter and 7.7 percent in the first quarter. Growth for the first nine months of 2013 was 7.7 percent keeping China on target for a 7.5 percent GDP for the year.

According to the China National Bureau of Statistics, industrial production jumped 10.2 percent in September year-on-year supported by a “mini financial stimulus” by Premier Li Kegiang that increased spending on rail, energy and infrastructure. Spending which also increased demand for China’s steel and cement industries.

Imports increased 7.4 percent in September while analysts were surprised by a fall in exports.  Export decline of 0.3 percent was driven by weaker global demand and fear of tightening US monetary policy. The strength of the yuan was also blamed for damaging Chinese competiveness. This past week the yuan traded at 6.0188 per dollar, its highest rate since August 16.
 
Fixed asset investments soared 20.2 percent in the first three quarters of the year while investment in real estate development grew 19.7 percent compared to the same period last year.  

Retail sales grew by 13.3 percent on a year-over-year basis.

Beijing is working to balance the economy through slower but sustainable growth, less reliance on investment and a more consumption-oriented economy. The outlook for fourth quarter is continued but moderating growth.

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