Business

China Growth Revs Up to 8.9% in Q3
By wchung | 08 Jun, 2026

China’s economy charged ahead in the third quarter, expanding by 8.9 percent thanks to lavish stimulus spending that sparked a boom in construction, share prices and consumer spending.

Growth for the first nine months of the year was 7.7 percent, the National Statistics Bureau reported Thursday. Officials have said they expect the economy to at least reach the annual growth target of 8 percent.

China has offset a slump in exports with a 4 trillion yuan ($586 billion) stimulus plan that calls for massive spending on roads and other public works to pump up the domestic economy.

Despite surging share and property prices, consumer prices fell, with inflation at negative 1.1 percent so far this year, the statistics bureau said.

But while the economy is flourishing for now, some analysts warn that the investment-fueled recovery, with its strong emphasis on public works projects, is masking or even worsening weaknesses that are bound to weigh down growth in the long-term.

“China’s doing fine. They threw so much money at it that if it wasn’t, it would be surprising,” said Standard Chartered Bank economist Stephen Green.

“We’ll see strong growth from China for the next six months, possibly another year,” he said. “The problem is what happens after another year and a half. What will be the growth driver then?”

On Wednesday, China’s top leaders signaled their own concerns over imbalances in the economy, with the State Council saying that policy will shift to dealing with industrial overcapacity and other problems of high growth.

“In the first three quarters, the pace of economic growth quickened,” the State Council said in a statement after a meeting with Premier Wen Jiabao. “At the same time, we also are clearly aware that there are still difficulties and problems in the economic and social development of our country.”

China’s economic stimulus plan remains on track, but greater efforts will be made to curb overcapacity, promote new industries, maintain liquidity and lower unemployment, it said.

10/21/2009 11:02 PM ELAINE KURTENBACH, AP Business Writer SHANGHAI