China bounces back from slowdown as GDP rises - but experts warn recovery momentum is not likely to last long
China's ‘Red Dragon’ economy clocked up its fastest growth rate of 2013 between July and September as it bounced back from its first half slowdown.
Gross domestic product, or total output, in the world’s second biggest economy rose at an annual rate of 7.8 per cent in the third quarter of the year.
It put China on course to hit its 7.5 per cent growth target for the year and calmed fears that the economy is heading for a punishing slowdown.
China is set to hit its 7.5% growth target for the year, but that would be its worst performance for 23 years
‘There’s no question China can achieve this year’s growth target,’ said Zhu Haibin, chief China economist at JP Morgan Chase in Hong Kong.
But he warned the ‘recovery momentum is not likely to last long’ before adding: ‘We expect the fourth quarter will continue to be quite decent growth but moderate a little bit.’
Growth of 7.5 per cent would be China’s worst performance for 23 years. The country racked up years of double-digit growth to become the world’s second largest economy behind the US but some analysts believe growth could slow to below 7 per cent this year.
The International Monetary Fund is forecasting growth of 7.6 per cent in China this year and 7.3 per cent in 2014.
China’s breakneck growth rate in recent years has been driven by exports and manufacturing as well as government spending on infrastructure.
But a slowdown in key markets such as the United States and Europe has hit demand for Chinese goods and the authorities in Beijing are now trying to rebalance the economy by boosting domestic demand.
‘This could be as good as it gets,’ said Mark Williams, chief Asia economist at Capital Economics.
Most watched Money videos
- Take a look inside the classic Ford Sierra Cosworth RS500 car
- The new Aston Martin DBS Superleggera makes its debut
- Martin Lewis breaks down for couples how the marriage tax break works
- What is happening to house prices and the property market
- Pension guide specialists help people to understand their options
- Investing Show: How to find the best companies to invest in
- Land Rover creates one-of-a-kind defender for milestone
- Jaguar C-X17 is unveiled at the Frankfurt Motor Show
- PrivateFly's animation explains their private jet charter network
- 'No one's expecting house prices to drop dramatically again'
- How to create a This is Money Power Portfolio
- 2013: This is MONEY Editor on THAT RBS and NatWest fiasco