China remains on track to grow in the third quarter of 2016 buoyed by service sector growth and fixed asset investment China Economic Quarterly, Nov 2016
The China Economic Quarterly is a market outlook prepared on a quarterly basis by PwC to share the latest economic and policy updates. In this third quarter update, the overview of China's macro trends are followed by a summary of the main policy developments and hot topics of interest such as Xi Jinping's speech on the role of the Party in the management of state-owned enterprises (SOEs), China's supply-side structural reform and pilot programme on SOE reform.
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According to key economic data released by China's National Bureau of Statistics for the third quarter of 2016, China's GDP grew at the rate of 6.7%, an increase of 1.8% from the previous quarter, thanks to strong investment and expansionary monetary policies.Here are the key findings:
- Services maintained its strong momentum, growing 7.6% year-on-year in the first three quarters, contributing to just over half of total GDP growth.
- Fixed asset investment grew 8.2% (or 9.5% real growth rate) to RMB 42.69 trillion, remaining one of the key drivers of the overall economy.
- National Development and Reform Commission (NDRC) has expedited the approvals for urban rail projects. Up to now, urban rail plans of nearly 50 cities have been approved with a total investment of more than RMB 2.5 trillion.
- Sales of residential buildings surged by 43.2% in response to new government restrictive policies on house purchase and land supply and rising inflow of hot money into the market.
- Consumption maintained its growth momentum, becoming a major contributor to China's economic growth.