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China's economy accelerates picking up speed in the third quarter

China's economy accelerates picking up speed in the third quarter
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The world’s second largest economy has picked up speed. Figures for China’s economic growth for the third quarter show it grew to 7.8 percent.

Official data showed growth in industrial output, retail sales and fixed asset investment. So far this year investment has accounted for more than half of the expansion.

It is the first rise in three quarters and keeps the country on track to reach the governments growth target of 7.5 percent for this year. But after slipping in eight of the last 10 quarters analysts said growth may fall again in the current period.

“I expect over time and perhaps not soon we’ll start to see, and maybe in the next two or three years, we’ll start to see a deceleration in GDP growth to another slower but more sustainable growth trend of perhaps 5 -6 percent,” explained Andrew Economos, Head of Sovereign and Institutional strategy, JP Morgan Asset Management.

In the past China has relied heavily on its export and manufacturing sectors to boost growth but a slow down in key markets has hindered that.

Beijing is trying to shift the economic mix and gear it more to consumption. Despite the pick up in pace the figures for the first nine months show it is the worst performance for China in 23 years.