BEIJING — China’s economy grew 9.1 percent in the third quarter, the government said Tuesday, outpacing expectations and signaling that the world’s second-largest economy can’t be counted out just yet.
The growth in gross domestic product followed a 9.5 percent expansion in the second quarter, according to data the government released.
Economists have been expecting growth to slow significantly, but the newest numbers from the National Bureau of Statistics indicate further that China may not be in for the “hard landing” that many have predicted in recent weeks.
Data released in the past week showed inflation slowing to 6.1 percent in September from a year ago, compared with 6.5 percent for August.
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Despite the relatively positive news, concern remains over the plight of small- and medium-sized companies, particularly in Zhejiang province. There, a reported 90 local businessmen have fled over bad loans in recent weeks, though some are starting to return. Zhejiang, Guangdong province and the Pearl River Delta are China’s major manufacturing centers and have taken significant hits with the loss of export orders from the United States and Europe in recent years.
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In comments to the official China Daily newspaper, a former vice minister of commerce said major trouble spots remain in the overall economy and China faces the possibility of its first annual trade deficit since 1993. Primarily, shady lending and unpaid debts are creating major problems in key areas like Zhejiang and Guangdong. As of yet, the government has not stepped in with bailouts or plans to shore up the crisis.
“China’s export-reliant enterprises are facing their toughest time in years. The possibility of a full-year trade deficit cannot be ruled out next year,” said Wei Jianguo, who now heads a government-linked economic think tank.