China's economy grows 4.5% in third quarter, beating forecasts

China’s economy grew 4.5% year-on-year in the third quarter, a faster pace than the 4.3% recorded in the second quarter, which was described as a more-than-three-year low. The National Bureau of Statistics released the figures on Monday.

The result cleared several expectations. It exceeded the 4.4% median forecast in a Bloomberg survey, the 4.41% consensus forecast from Wind, a Chinese financial data provider, and the 4.4% estimate in a Reuters poll.

Retail sales and industrial production strengthened, providing relief after the weaker second quarter.

On a quarterly basis, gross domestic product rose 1.2% in the third quarter, against expectations for 1.1%. That followed quarterly growth of 0.9% in the previous quarter.

Growth for the first nine months of the year reached 4.6%, placing the economy closer to Beijing’s annual target of 4.5%-5%. The stronger result improves the chances of reaching that target.

The figures also reduce the immediate case for further easing and take some pressure off policymakers to deliver more aggressive stimulus. Beijing still faces pressure to provide further support for the economy.

That pressure has not disappeared. Property downturns and weak domestic demand continue to weigh on the economy, leaving the durability of the rebound as the central question.