(Yicai) Oct. 19 -- China’s gross domestic product expanded 4.5 percent in the third quarter from a year earlier, beating market expectations and keeping the world’s second-largest economy on track to meet its annual growth target.

The headline figure released by the National Bureau of Statistics today outstripped the second-quarter’s 4.3 percent clip and the average 4.4 percent predicted by 13 chief economists polled by the Yicai Research Institute.

Growth was underpinned by strong exports, resilient industrial production, government policy measures to stabilize and support the economy, along with a relatively low year-earlier base of comparison, though sluggish domestic demand weighed on the expansion.

In the first three quarters, GDP grew 4.6 percent year on year, the NBS data also showed. In March, the government set a growth goal of 4.5 percent to 5 percent for this year.

The economy continued to operate stably despite mounting pressures, and showed a shift toward new growth drivers and a better economic structure, NBS deputy head Mao Shengyong said at a press conference today.

Production and supply grew relatively quickly, foreign trade maintained positive momentum, employment and prices remained broadly stable, and people’s livelihoods were effectively safeguarded, demonstrating the economy’s ongoing resilience and vitality, he said.

Mao cautioned that the international environment remains complex and volatile, domestic demand is still insufficient, and the foundation for a stable and improving economy still needs consolidation.

Going forward, efforts will be made to fully leverage the effectiveness of economic policies, expand domestic demand and optimize supply, safeguard and improve livelihoods, and drive the economy toward a higher-quality and more sustainable growth trajectory, he said.

Uneven Recovery

While resilient production and rapid export growth provided support during the third quarter, weak domestic demand continued to constrain growth, said Wen Bin, chief economist at China Minsheng Bank. On the supply side, the industrial and service sectors demonstrated resilience. On the demand side, exports maintained strong growth, though the recovery in consumption was uneven, and investment remained strained, he said.

Last month, industrial production climbed 5.5 percent, faster than August’s 5.2 percent clip. Retail sales of consumer goods rose 1.1 percent to CNY4.2 trillion (USD628 billion), compared with 0.4 percent the month before.

In the January to September period, fixed-asset investment slumped 7.2 percent to CNY33.4 trillion (USD5 trillion). But the rate of decline was unchanged from the first eight months, marking the end of a slowdown seen since March.

China had continued to expand and strengthen policies to boost consumption since the third quarter began, said Wei Ying, deputy director of the Big Data Development Department at the State Information Center.

Consumer willingness to spend has gradually improved, demand continues to be released, and the advantages of the country’s vast domestic market have become increasingly evident, providing strong support for expanding domestic demand and stabilizing growth, he said.

On the issue of investment, Wei said policymakers had rolled out a coordinated package of measures to steady investment last quarter, particularly in September, strengthening funding support. Investment in emerging frontiers such as artificial intelligence remains strong, he said, adding that this is helping to underpin near-term economic growth while also building momentum for the development of new quality productive forces.

Editor: Kim Taylor