China's economy grew by 4.8% in the third quarter.

Growth in the Chinese Economy

The Chinese economy grew by 4.8 percent year-on-year in the third quarter of 2023, in line with economists' forecasts, despite the ongoing stagnation in the real estate sector.

Decline in Fixed Asset Investments

In the first nine months of the year, fixed asset investments unexpectedly contracted by 0.5 percent. This situation was attributed to a slowdown in infrastructure and manufacturing investments.

Decline in the Real Estate Sector

Real estate investments continued to decline, recording a 13.9 percent decrease. This figure represents a sharper decline compared to the 12.9 percent drop in the first eight months of the year.

Expert Opinions

The president and chief economist of Pinpoint Asset Management, Zhiwei Zhang, emphasized that the decline in fixed asset investments is "rare and concerning." Zhang noted that GDP growth in the fourth quarter would be under downward pressure.

First Contraction Since 2020

According to Wind Information data, China last recorded a contraction in fixed asset investments during the pandemic period in 2020.

Retail Sales and Industrial Production

In September, retail sales increased by 3 percent compared to the same period last year, meeting analyst expectations. Industrial production, during the same period, showed a 6.5 percent increase.

Export and Inflation Data

Official data for September revealed that China's exports continued to show resilience despite tensions with the U.S.. The core consumer price index, excluding food and energy prices, recorded its fastest increase since February 2024. However, headline inflation fell by 0.3 percent, coming in below expectations; this indicates that deflationary pressures persist.