China economic growth slows in Q3

BEIJING (AFP)-China's economy grew more than expected in the third quarter, data showed yesterday, but the reading was still below target and officials continue to face calls for more stimulus while struggling to contain an unprecedented property crisis.

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The 4.9 percent expansion in July to September was helped by forecast-beating retail sales figures and follows a series of broadly positive readings that point to a period of stability following months of weakness despite the lifting of strict zero COVID measures.

But authorities are still on edge over turmoil in the real estate sector, which has long accounted for a quarter of the country's gross domestic product, supports thousands of companies and is a major source of employment.

The industry enjoyed dazzling growth for decades, but the recent woes of key developers including Evergrande and Country Garden are now fuelling buyer mistrust while homes lie unfinished and prices plummet.

Country Garden, one of China's biggest property firms and long believed to be financially sound, failed last month to repay interest on a loan totalling $15.4 million.

The group has been granted a 30-day grace period which ends on Wednesday, and risks default if it does not honour the repayment The country faced a “grave and complex international environment and challenging tasks in promoting reform, development and stability at home" in the first three quarters of 2023, the National Bureau of Statistics said on yesterday.