China once again published positive data. Thus, in the third quarter of 2023, the local economy expanded by 4.9%. Some analysts were surprised by the fact that China managed to avoid a recession. Most economists supposed that economic growth would hardly exceed 4.4%. However, the growth surpassed forecasts by 0.5%. It is highly possible that business activity in retail sales and industrial sector showed a considerable rise.
However, the situation is not as rosy as it might seem. Compared to the second quarter of 2023, GDP growth is not that significant. From April to June, the indicator increased by 6.3%, whereas this time it returned to 4.5% seen in the first quarter. It is also possible that the Chinese economy took a pause preparing for a new jump.
According to Zhiwei Zhang, the President and Chief Economist at Pinpoint Asset Management, regardless of some difficulties, the Chinese government will reach the GDP target of 5% by the end of 2023. The expert believes in the success of the country’s authorities, which may achieve their goal in the fourth quarter of the year without stimulus measures.
Nevertheless, it is still unknown when the Chinese economy will be so stable that forecasts will remain unchanged for more than just a week. At present, economists are constantly revising their predictions.
