China's economy grew 4.5 percent year on year in the third quarter of 2026, beating forecasts as exports and factory activity balanced out weak domestic demand and a housing slump.
The National Bureau of Statistics reported the data on Monday, October 19. Growth was 4.3 percent in the second quarter, and the economy expanded 1.2 percent compared with the previous three months. The third-quarter result beat the 4.4 percent forecast from economists and brought total growth for the first nine months to 4.6 percent.
That nine-month rate remains within the government's official full-year target of 4.5 to 5 percent. The overall numbers hid a sharp divide between solid industrial output and shrinking investment. Real estate development investment dropped 20.6 percent from January through September, worsening from a 19.9 percent decline recorded during the first eight months.
Total investment in fixed assets fell 7.2 percent over the same period. In September, retail sales climbed 1.1 percent from a year earlier, and industrial production rose 5.5 percent. Those modest gains failed to remove worries about quiet consumer spending.
Foreign trade, including demand for technology products, helped offset those local weaknesses. Analysts noted that the continued property downturn and fragile household spending remain major obstacles to a balanced recovery. The higher-than-expected growth may reduce immediate pressure on Beijing to introduce larger economic support measures.
However, prolonged weakness across housing and consumer spending continues to weigh on the economic outlook.