1、November Q4China Economic Monitor:Policies support steady economic recovery 1 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms o

2、f the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Figure 1:GDP growth,%,YoYSource:Wind,KPMG analysisChinas GDP grew 4.9%year-on-year in the third quarter,down from 6.3%in the second

3、 quarter,mainly due to the rise in the comparison base last year.Excluding the base effect,the average growth rate in 2022-23 in the third quarter was 4.4%,up 1.1 percentage points from the second quarter,exceeding market expectations.On a month-on-month basis,GDP in the third quarter increased by 1

4、.3%,0.8 percentage points faster than that in the second quarter,and the domestic economy continued to recover,with a significant margin of improvement.GDP in the first three quarters increased by 5.2%year-on-year.This means that,if calculated based on the expected annual target of 5%,only 4.4%growt

5、h is needed in the fourth quarter.With the gradual emergence of the effect of the steady growth policy and the low base in the same period last year,it is expected that the annual economic growth target set out in the Government Work Report at the beginning of the year can be successfully reached.Ov

6、erall,the period of the greatest downward pressure on the economy in the whole year has passed,and the economy will continue to recover moderately.However,the current economic recovery is still uneven,the momentum of economic recovery is still not strong,the foundation of economic recovery needs to