Official data released October 19 showed that China’s economy grew 4.5% year over year in the third quarter, as strong exports and factory output helped offset weak consumer demand and continuing troubles in the property sector.
The pace improved from 4.3% in the previous quarter. It slightly exceeded the 4.4% forecast in a Reuters poll. Growth for the first nine months of 2026 reached 4.6%.
Foreign demand for Chinese goods, particularly technology products, helped drive the rebound. In September, exports rose sharply. The monthly trade surplus reached a record $133.5 billion.
Industrial output rose 5.5% in September. Retail sales increased just 1.1%, showing the limited strength of household spending. Investment in fixed assets fell 7.2% in the first nine months.
Real-estate investment dropped 20.6%, reflecting worsening problems in the property sector. The figures put China within its 2026 growth target of 4.5% to 5%. But the recovery depends on overseas buyers, leaving it exposed to changes in global demand and trade tensions.
The data may ease immediate pressure on Beijing to take stronger steps to boost the economy. Yet ongoing weakness at home remains a challenge to sustaining growth.