China’s third-quarter economic growth accelerates to 4.5% on rising exports, beating estimates

China’s economic growth accelerated to 4.5% in the third quarter from a year earlier, as foreign demand for the country’s technology goods more than offset a worsening property crisis and weak consumer demand.

That compares with a 4.4% expansion forecast among economists polled by Reuters and a three-year low of 4.3% in the second quarter.

The data shows an economy that still relies on factories and foreign buyers while households and private investors appear hesitant. In the first nine months, growth averaged 4.6%, near the lower end of Beijing’s official target range of between 4.5% and 5%.

In the first nine months of this year, fixed capital investment in urban areas fell further, falling 7.2% from the same period a year earlier, compared with a 7.3% decline according to a Reuters survey.

In September, retail sales grew 1.1%, beating analysts’ forecasts of a 0.6% increase, while industrial production rose 5.5% from a year earlier, in line with forecasts of 5.5% growth.

The urban unemployment rate stood at 5.2% in September.

Beijing has relied heavily on exports for growth this year, but that engine faces increasing pressure as investment in AI-related sectors slows and trade tensions with the European Union escalate.

Chinese authorities have stepped up their policy support, including a package of targeted rate cuts and mortgage subsidies in late September. In early October, it also allocated 550 billion yuan of unused debt quota to local governments.

Economists widely expect the People’s Bank of China to keep policy rates unchanged throughout this year, letting fiscal measures do most of the work.

Correction: This story has been revised to reflect that quarterly GDP growth was 4.5%.