China's economy grew 4.5% in the July-September quarter, accelerating more than expected and moving the country closer to meeting its official annual growth target. This figure marks an improvement from the April-June period, where growth hit a more-than-three-year low of 4.3%.
The acceleration was largely driven by foreign demand for technological goods, which offset sluggish consumer demand. Despite the growth, the economy remains burdened by a prolonged housing crash, poor consumer confidence, plunging investment, and sluggish spending, leaving China dependent on exports to maintain momentum.
This economic improvement provides policymakers with breathing room, potentially reducing the need for additional easing measures. Looking ahead, Beijing is targeting annual growth of 4.5% to 5% in 2026, representing its lowest goal in decades.