China growth figures released today show an economy that’s growing faster than expected. The country’s third-quarter GDP is currently at a rate of 7.8 percent from a year earlier – up from 7.5 percent in the second quarter and 7.7 percent in the first quarter.
Today’s positive numbers come after Chinese efforts to maintain easy credit, government stimulus measures, and a global economy that’s getting stronger.
Chinese leaders are meeting soon to look into major structural reforms. President Xi Jinping plans on taking an economy that’s dependent on big projects to an economy dependent on consumer spending.
However, such a move could lower China’s GDP growth by the end of next year, says Beijing economist Arthur Kroeber.
“If you want to do these structural reforms, you will need to have credit growth slow much more,” Kroeber says. “If there’s easy money around and anyone can get a loan to do anything they want, then there’s no pressure in the system for structural reform.”
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.