China’s economy breathed a sigh of relief in the third quarter, beating experts’ estimates

The gross domestic product of the world’s most populous country increased more than expected in the third quarter of this year. The economy grew at a rate of just under four per cent. However, the Chinese economy faces many challenges in the future.

Third quarter significantly better than the second

The Chinese economy posted much faster gross domestic product growth in the July-September period than in the second quarter. China’s GDP grew by 3.9 per cent year-on-year in the third quarter, compared with growth of just 0.4 per cent in the second quarter. Year-on-year growth was even half a percentage point higher than a Reuters poll of analysts suggested.

Strict anti-poverty measures

Growth in the Chinese economy was driven largely by domestic demand, which was dampened by strict anti-poverty measures in the previous quarter. However, it is the coronavirus epidemic that poses the greatest risk to economic growth in the period ahead. Moreover, as China’s export growth has slowed.

“There is no chance yet that China will back off its zero-covid policy, even in the coming year,” Julian Evans-Pitchard, an economic analyst at Capital Economics who focuses on the Chinese market, told Reuters. He said there was a risk that a possible return of the epidemic would send the Chinese economy back towards stagnation.

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Gulf Brokers Ltd. Review

Comparing spreads, commissions, trading platforms, rules and reading dozens...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Sephora Stock & LVMH Investment Guide: Is Sephora Publicly Traded?

Sephora is one of the world’s most recognisable beauty...

Japan and US jointly intervene to support yen for first time in 15 years

Japan and the United States carried out a coordinated...

VUG Stock Split: What Vanguard’s 6-for-1 Split Means for Investors

Investors searching for information about the VUG stock split may have...

Dollar, Pound, and Franc: How USD to GBP and Interest Rate Differentials Drive Currency Flows

The relationship between the US dollar, British pound and...

AFP: Developers are testing ways to communicate with books using AI

More and more start-ups and digital publishers are offering...
spot_img

spot_imgspot_img