2020.10.1907:30:00UTC+00China GDP Growth Gains Further Momentum

China's economic growth gained further momentum in the third quarter driven by the recovery in domestic consumption, and the global demand for medical equipments amid the coronavirus pandemic helped exporters.

Gross domestic product grew 4.9 percent year-on-year in the third quarter, faster than the 3.2 percent growth seen in the second quarter, data published by the National Bureau of Statistics revealed Monday.

However, growth was slower than the economists' forecast of 5.2 percent.

On a quarterly basis, GDP was up 2.7 percent versus the 3.2 percent growth that economists had expected.

During January to September, the economy expanded 0.7 percent, suggesting that the economy shrugged off the record contraction posted in the first quarter.

In September, retail sales expanded 3.3 percent after posting a marginal 0.5 percent increase in August. Sales were forecast to climb 1.8 percent.

Industrial production advanced 6.9 percent annually, following a 5.6 percent rise a quarter ago. This was also bigger than economists' forecast of 5.8 percent.

During the nine months to September, fixed asset investment gained 0.8 percent, which was in line with forecast. Property investment grew 5.6 percent.

The unemployment rate dropped to 5.4 percent from 5.6 percent a month ago.

The recovery broadened out and became less reliant on investment-led stimulus, Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said. What's more, the monthly data show that growth was still accelerating heading into the fourth quarter.

While all major global economies are forecast to shrink this year due to the coronavirus pandemic, the International Monetary Fund upgraded China's growth projection to 1.9 percent from 1 percent. Growth is forecast to zoom to 8.2 percent in 2021.