China's third-quarter growth quickens to 4.5% on export surge

· Economy · China

China's economy grew 4.5% year-on-year in July-September, faster than forecasts, as roaring exports of technology goods offset sluggish consumer spending and industrial output outgrew retail demand. The AI boom helped lift electronics exports, but trade tensions and doubts about AI spending cloud the outlook. The central bank also signalled that its overnight reverse repurchase rate will replace the current seven-day rate as the new policy benchmark, a step that aligns it closer with global peers and has the potential to push down borrowing costs.

Why it matters：China's export-led growth is keeping the world's second-largest economy on track even as weak domestic demand and trade frictions weigh on the global outlook.

Key points

  • GDP rose 4.5% year-on-year in the third quarter, beating estimates
  • Exports of technology goods offset weak consumer spending
  • The PBOC plans to shift its policy rate benchmark to the overnight reverse repo rate

Sources (original reporting)

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