China's economy grew by 4.5% year over year in the third quarter of 2026, beating forecasts as strong exports countered weak domestic demand and a housing slump.
The National Bureau of Statistics reported on October 19 that growth picked up from 4.3% in the previous quarter. Economists surveyed by Reuters had expected 4.4% growth. Gross domestic product also expanded 1.2% from the prior quarter, compared with 0.9% recorded between April and June.
Growth for the first nine months reached 4.6%, which sits within Beijing's full-year target range of 4.5% to 5%. Strong foreign demand for technology goods, including products tied to artificial intelligence, helped support economic activity. In September, industrial output increased by 5.5% compared to a year earlier.
Retail sales rose 1.1% in September, showing that household spending stayed low. Investment showed greater weakness, with fixed-asset investment falling 7.2% during the first nine months. Investment in property development dropped 20.6% over the same period.
The higher-than-expected growth figure may reduce immediate pressure on officials to launch broad new economic stimulus measures. However, the export-driven recovery leaves policymakers with the challenge of boosting domestic demand while the property downturn continues.