China Continues GDP Growth Trend in Third Quarter

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China has released third-quarter domestic product figures and the country is showing another consecutive increase. Showing a 6.8% expansion, the growth of the country’s GDP output met expectations, even if it was slightly lower than the second quarter’s 6.9% inflation. China’s National Bureau of Statistics reported the figures, stating that the increase is in comparison to the same quarter from 2016.
China Sees Continued Third-Quarter Growth
The news of third-quarter gross domestic product growth comes as President Xi Jinping pledges a new direction for the country’s economic growth. U.S. economists had predicted a drop in China’s GDP output for the third quarter, because the growth seen in the second quarter was a result of the Chinese government’s attempt to cool the real estate market and slash debt risks. However, changes in China and internationally have combined to create a force for greater economic development for the country.
The National Bureau of Statistics states that the international efforts to achieve financial recovery have had a positive effect on China’s own economy. The country has increased exports, compared to last year’s output of products, providing the country with more stability, while domestic business struggled to catch up, reports CNBC.
Helen Zhu, head of China equities at BlackRock, says the exports and trade in the global market will help China continue to grow, as they try to reach their domestic growth targets at home. Ms. Zhu added that China is again stable and has a better composition, so corporate borrowing will be at a minimum in the future.
Retail Sales and Household Spending Influences China’s Growth
While it may seem as though China is relying on international exports to carry the weight of their economy, the statistics bureau reports that such assumptions are false. In fact, they report that retail spending grew by 10.3%, when compared to figures from the same period in 2016. Additionally, household spending was responsible for 64.5% of China’s GDP growth in the most recent three quarters. Household spending is expected to thrive into the last half of the year as well with predictions that it will be responsible for bolstering the GDP up to a 7% increase.
Early in the year, China had much lower expectations. Premier Li Keqiang stated that China was expecting to bolster its economy by 6.5% in this year, so the country is proudly boasting its latest accomplishments. More growth is expected, as China moves from a productivity scheme of high quantity to providing better quality items. By emphasizing quality over speed over the GDP output, Chinese economists hope to instill a growth direction that will be sustainable over the long term.

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