China's economic growth rebounded to 7.8% in 3Q
2013 growth target may be within reach, says analyst.
According to BNP Paribas, China’s economy staged a marked rebound in 3Q. As analyst expected, GDP growth accelerated to 7.8% y/y from 7.5% y/y in 2Q and 7.7% y/y in 1Q.
In the first three quarters, GDP expanded 7.7% y/y. That means, barring drastic deterioration in 4Q, there is little difficulty to achieve the 7.5% growth target set for this year.
On quarter-on-quarter basis, the rebound was even more pronounced. Annualized GDP growth bounced off to 9.1% in 3Q, compared to 7.8% in 2Q and 6.1% in 1Q, according to NBS’s calculation.
From output angle, the upswing was driven by better industrial production and strengthening service output. Agriculture output, with 12% share in GDP, expanded 3.8% y/y in 3Q. Growth in secondary industry picked up to 8.2% y/y, after it dipped to a three-year low of 7.4% y/y in 2Q.
Service output remained the brightest spot, growing 8.6% y/y in 3Q, after rising 8.3% y/y in both 1Q and 2Q. This is a desirable development and reflects the efforts the new government has made to improve economic structure in China.