© Reuters. FILE PHOTO: People walk by office towers in the Lujiazui financial district of Shanghai, China October 17, 2022. REUTERS/Aly Song
BEIJING (Reuters) – China’s economy rebounded at a faster-than-expected pace in the third quarter, official data showed on Monday, but strict COVID curbs and global recession risks are challenging Beijing’s efforts to foster a robust revival over the next year.
Gross domestic product (GDP) in the world’s second-biggest economy rose 3.9% in the July-September quarter year-on-year, above the 3.4% pace forecast in a Reuters poll of analysts, and quickening from the 0.4% pace in the second quarter.
On a quarterly basis, GDP rose 3.9% in the third quarter, versus a forecast 3.5% gain and a 2.6% decline in the previous quarter.
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Despite the rebound, the economy is facing challenges on multiple fronts at home and abroad. China’s zero-COVID strategy and strife in its key property sector have exacerbated the external pressure from the Ukraine crisis and a global slowdown due to interest rate hikes to curb red-hot inflation.
A Reuters poll forecast China’s growth to slow to 3.2% in 2022, far below the official target of around 5.5%, marking one of the worst performances in almost half a century.