China’s economy expanded by 4.6% year-on-year in Q3 2024, slightly above market expectations of 4.5% but below the 4.7% rise recorded in Q2. This marks the slowest growth rate since Q1 2023, highlighting several challenges faced by the country.

Stimulus Measures Show Mixed Impact

In response to the slowdown, Beijing intensified stimulus efforts. September brought some positive results: industrial output and retail sales posted their largest gains in four months, and the urban unemployment rate dropped to a three-month low of 5.1%. However, exports grew at their slowest rate in five months, and imports remained sluggish, reflecting ongoing trade pressures.

Year-to-Date Performance and Economic Outlook

For the first nine months of 2024, China’s economy expanded by 4.8%, close to the 5% annual target. Fixed investment grew 3.4%, slightly above the forecast of 3.3%. While stimulus measures have brought limited relief, the final quarter will be critical to determine if China can meet its year-end growth target amid persistent economic challenges.