China’s economy rebounds as loose monetary policy takes hold

China experienced promising growth in the third quarter thanks to government initiatives, but saw a slowdown in industrial and services activity last month.

The economy grew at an annualised rate of 7.8 per cent in the third quarter, up from 7.5 per cent growth in the three months to June, according to the National Bureau of Statistics.

It was the nation’s quickest rate of growth this year, and reversed a trend whereby eight of the past 10 quarters showed a contraction, which led to fears the global superpower’s economy could not grow in a sustainable way.

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The expansion was partly down to increased government spending in infrastructure, and other investment, while growth in industrial retail activity actually fell in September.

The Chinese government hopes it can move away from an investment led economy in favour of growth driven by consumption.