The Wall Street Journal reports that China’s economy grew 3.9% in the third quarter, scoring higher than the 3.5% economic growth expected by experts. This marks an improvement from the second quarter, during which Covid lockdowns in major cities kept millions of people at home for long periods of time.
That being said, this growth fell short of the 4.8% expected economic growth rate before Covid lockdowns slowed down the economy in China. Data also shows that the overall growth for the first nine months of 2022 was set at 3%, way below the official full-year target of 5.5% set in March.
Experts enumerate the challenges facing the Chinese economy as being slow export growth, Chinese households cuts in spending, and a real estate slump. Amid these challenges, Xi Jinping reinforces his leadership and control over the political sphere for five years to come.
According to economists, the world’s second-largest economy’s pre-pandemic rapid pace of growth may never be attained again, stressing that this will also prevent it from surpassing the United States’ economy. Listing the reasons behind this, experts mention “an aging and shrinking population, a worsening standoff over trade, technology, and foreign policy with the U.S., and an enormous pile of public and private debt,” says the Wall Street Journal.
Still, Xi Jinping described China’s economy as highly resilient, with plenty of room to maneuver, stating this to the media after securing a third mandate as China’s most powerful man.