China’s economy saw its slowest expansion since early 2023 during the third quarter as the government sought ways to boost growth.

Official statistics revealed that the world’s second-largest economy grew by 4.6% from July through September, slightly exceeding expectations but falling short of the 4.7% growth recorded in the second quarter.

Although authorities have amplified stimulus measures since late September, market participants are eager for more clarity on the scale of support and the government’s strategies to fortify the economy.

Bruce Pang, chief economist for greater China at Jones Lang LaSalle, remarked that the data was “not a surprise.” He noted that “the performance corresponds with market predictions, considering the weak domestic consumption, ongoing struggles in the housing market, and decelerating export growth.”

Government officials remain optimistic regarding the ability to meet the full-year growth target of approximately 5%.

Sheng Laiyun, deputy head of China’s statistics bureau, stated, “From our detailed assessment, we anticipate that the economy in the fourth quarter will continue the stabilization and recovery observed in September. We are entirely confident in reaching the full-year target.”

At the end of September, the People’s Bank of China unveiled the most extensive stimulus package since the onset of the pandemic. This included significant reductions in interest and mortgage rates, as well as initiatives aimed at invigorating a struggling stock market. Laiyun indicated that it will take time and patience for the stimulus package to effectively enhance growth in the following quarters.

While both consumption and factory output figures exceeded forecasts in September, the ailing property sector continues to pose a challenge for Beijing, with investor confidence remaining fragile.

Shane Oliver, Chief Economist at AMP, expressed skepticism about the impact of the stimulus on these figures, suggesting, “These numbers are unlikely to reflect the stimulus announced in September. It does not significantly alter the broader narrative for China. Growth is ongoing but remains modest when viewed against historical trends.”

The International Monetary Fund (IMF) projects that China’s economy will grow by 5% in 2024 and 4.5% in 2025, while Goldman Sachs has adjusted its growth forecast for this year down to 4.9% from the previously estimated 5%.

Chinese stocks experienced an uptick on Friday, concluding the week on a positive note, following the central bank’s introduction of funding schemes and its call for rapid implementation of policies to support capital markets. The mixed economic landscape has kept pressure on policy makers to consider further stimulus.

The People’s Bank of China (PBOC) initiated two programs to inject up to 800 billion yuan ($112 billion) into the stock market using new monetary policy tools, enhancing investor confidence. The CSI300 Index rose 3.6%, while the Shanghai Composite Index increased by 2.9%. Both indices have recorded a 1% gain this week.

However, Chinese stocks remain down about 11% from their peak on October 8, following a turbulent few weeks, as caution replaced the initial enthusiasm stemming from Beijing’s stimulus initiatives in September.