BEIJING, October 19, 2026 (DAILYNWZ) — China’s economy grew 4.5% year on year in the third quarter, accelerating from 4.3% in the previous three months as strong exports helped the world’s second-largest economy beat market forecasts and stay on track for its annual growth target.
Gross domestic product expanded 4.6% in the first nine months of 2026, according to data released Monday by the National Bureau of Statistics. Quarter on quarter, growth reached 1.2% between July and September, up from 0.9% in the second quarter and above economists’ expectations of 1.1%.
The stronger figures offer some relief to policymakers, but the recovery remains uneven. Exports and industrial output have supported activity, while weak domestic demand and falling investment continue to weigh on the outlook.
China’s exports surged 36.3% in September from a year earlier, driven in part by semiconductor-related products and automobiles amid growing global demand for technologies linked to artificial intelligence. Imports rose 31% over the same period, although economists attributed part of that increase to price effects.
The export strength pushed China’s trade surplus to $938 billion in the first nine months of the year, putting the country on course for another annual record. Its surplus was close to $1.2 trillion in 2025.
The widening imbalance is adding to trade tensions with major partners. The European Union is seeking, among other measures, to regulate exports of Chinese hybrid vehicles and reduce strategic dependencies.
Other indicators showed signs of improvement in September. Industrial production grew 5.5% year on year, accelerating from 5.2% in August and recording its strongest increase in six months. Retail sales rose 1.1%, compared with 0.4% the previous month, marking their fastest growth since March.
Investment remained a major drag. Fixed-asset investment fell 7.2% in the first nine months of the year, while property investment plunged 20.6%. Infrastructure investment also declined 4.2%, despite government efforts to sustain spending on projects.
Authorities have expanded support measures to cushion the slowdown. These include assistance for homebuyers, interest subsidies on loans for small private businesses and consumers, and funding for infrastructure and technology sectors.
The Finance Ministry has also mobilized 550 billion yuan, or about $82.3 billion, from unused local government debt quotas.
The third-quarter rebound keeps China within reach of its official annual growth target of 4.5% to 5%. But persistent weakness in property and investment, alongside mounting trade friction, continues to cloud the outlook.