China's Q3 growth of 7.8pc fastest this year
BEIJING: China's economy grew at its quickest pace this year between July and September, underpinned by investment, although analysts question if the vigour would continue in coming months.
The world's second-largest economy grew 7.8 per cent in the third quarter from a year earlier, in line with expectations, data from the National Bureau of Statistics showed yesterday.
So far this year, investment has accounted for more than half of the expansion, showing the challenges faced by Beijing in trying to restructure the economy towards consumption, which policymakers expect to provide more sustainable growth in the years ahead.
After slipping in eight of the last 10 quarters, analysts said growth may fall once again in the current October-to-December period. Exports are expected to soften and authorities may also rein in credit expansion after inflation pushed to a seven-month high.
"We believe the People's Bank of China will slightly shift its monetary policy from a moderate expansion in the third quarter to a neutral stance," said Ting Lu, an economist at Bank of America-Merrill Lynch.
After three decades of double-digit expansion, fuelled by exports and investment, Beijing is trying to shift or "restructure" the economic mix so that activity is geared much more to consumption.
That means the economy has slowed down compared with previous years, although sluggish global demand has provided an added weight dragging on China's growth.
For the first nine months, the economy grew 7.7 per cent, keeping it on track to achieve the growth target of 7.5 per cent this year, far outperforming other major economies but still China's worst performance in 23 years. Reuters