China's growth picks up to 4.5% as the AI export boom offsets a deep property slump
The world's second-largest economy grew 4.5% in the third quarter, up from a three-year low of 4.3%, official data showed on Monday. Demand for chips and AI data-centre components lifted exports, while property investment fell by more than 20% in the first nine months.
China's economy expanded by 4.5% in the three months to the end of September, according to official figures released on Monday, a pick-up from 4.3% in the second quarter, which had been a three-year low. Growth is still below the 5% recorded in the first quarter and sits at the very bottom of Beijing's annual target range of 4.5% to 5%.
Exports were again the main engine. Global demand for computer chips and other components used to build artificial intelligence data centres has helped Chinese manufacturers offset weak spending at home, and the country's trade surplus is on course to beat last year's record of $1.2 trillion. The National Bureau of Statistics said the economy had 'sustained steady development against pressure' and showed momentum from new growth drivers.
The domestic picture remains fragile. Property investment fell by more than 20% in the first nine months compared with the same period last year, as the long-running slump caused by years of overbuilding and heavy borrowing by developers drags on. Weak wage growth and high youth unemployment continue to hold back consumer spending.
Beijing announced a package of support measures in September, including lower interest rates for some businesses and subsidies for home buyers. Analysts say growth at the lower end of the target gives policymakers some room, but the export-led model is drawing pushback from the United States and the European Union, whose manufacturers struggle to compete with cheap Chinese goods, and questions remain over whether the vast spending on AI infrastructure will pay off.
Source: BBC News