China’s Strong GDP Report Shows Housing Remains a Big Problem

  • Retail sales figures beat expectations, jobless rate falls
  • Property is ‘main concern’ into next year, Macquarie says

Buildings in Chongqing, China.

Photographer: Qilai Shen/Bloomberg
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China’s latest economic data put the government’s growth goal of about 5% well within reach and lessened the likelihood for more stimulus before the end of 2023. But the ongoing housing crisis remains a serious drag, worsening the outlook heading into next year.

While third-quarter gross domestic product figures released Wednesday surpassed expectations on strong consumer spending, the data points to difficult months ahead for the world’s second-largest economy as efforts by President Xi Jinping’s government to stabilize the property sector and avert deflation have shown little effect.