China’s economy grows steadily at annual rate of 6.7%

China’s economy grows steadily at annual rate of 6.7%

Factory in ChinaImage copyright
AFP

China’s economy grew at an annual rate of 6.7% in the three months to September, government data showed, a sign that growth is stabilising.

The figure was the same rate as the previous two quarters, and was in line with forecasts.

The spell of stability will reassure investors after China’s markets and currency crises earlier this year sparked fears of a further slowdown.

China’s economic performance has a big knock-on impact around the world.

Full year growth for 2016 is still likely to be weaker than last year’s, which was already the slowest in 25 years.

And there are growing concerns that growth is being propped up by government spending and growing debt – with private investment tumbling to record lows.

Construction boom

“The general performance was better than expected,” the National Bureau of Statistics said in a statement when releasing the data on Wednesday.

The figure is in line with Beijing’s growth target of 6.5%-7% for the year.

Real estate has been a driving force behind China’s economy this year, with separate data released on Wednesday showing that investment in property rose by 5.8% between January and September with sales increasing by almost 27%.

This is despite government efforts to try and prevent more property bubbles – with some cities demanding bigger mortgage deposits or banning second homes.

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China is the world’s second-largest economy and the second-biggest importer of both goods and commercial services.

China also plays an important role as a buyer of oil and other commodities. Its slowdown in growth has been a factor in the decline in prices of those goods.

China’s economy grows steadily at annual rate of 6.7%}

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