BEIJING, China: China's economy expanded faster than expected in the third quarter as booming exports helped counter weak consumer spending and a prolonged property downturn, keeping Beijing on track to meet its 2026 growth target.

Gross domestic product grew 4.5 percent, beating economists' forecast of 4.4 percent and rebounding from three-year lows.

China's economy expanded 4.6 percent in the first nine months of the year. Analysts expect it to meet the government's 2026 growth target of 4.5 percent to 5.0 percent without additional stimulus.

The figures underscored an uneven recovery, however, with retail sales continuing to lag industrial output and the property downturn weighing on household wealth.

Exports rose by more than a third in data released last week, highlighting China's increasing reliance on overseas demand. The country is on track to surpass last year's US$1.2 trillion trade surplus.

September trade surpluses with Germany and France each rose more than 200 percent from the previous year.

"This year's growth figures highlight a deeper rebalancing challenge for the medium term," ANZ analysts said.

"Rising trade tensions, protectionist measures and geopolitical frictions pose significant risks to future growth," they added, saying "the economy is exposed to changes in the external environment to a greater extent than policymakers would prefer."

Industrial output rose 5.5 percent in September, while retail sales increased 1.1 percent, their fastest growth in six months but from a low base.

Fixed-asset investment fell 7.2 percent in the January-September period, while unemployment eased to 5.2 percent in September.

Statistics bureau official Mao Shengyong described this year's economic growth as "hard-won," while acknowledging "unbalanced and inadequate development."

Beijing has introduced fresh support measures since late September, including cheaper credit for infrastructure and technology, modest mortgage subsidies and additional funding for local governments.

But economists remain concerned about the economy's dependence on exports and continued weakness in domestic demand.

"China's export expansion is not without limits," Societe Generale economist Michelle Lam said.

"Without a decisive policy shift toward supporting household incomes and consumption, China is likely to remain trapped in a prolonged period of low inflation and sub-par growth."

The yuan strengthened to its highest level since July 2022 following the data.