China’s third quarter economic performance put the economy on track to reach its 5 percent annual growth target, but systemic economic problems complicate longer term growth prospects.
Retail sales and industrial output both boosted growth in the third quarter, though concerns over deflation persist, which could further stymie demand and industrial profits.
Next week the government is expected to hold the twice-a-decade National Financial Work Conference, where more details could emerge on China’s plans to address the property sector and local government debt challenges.