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( As on 19/10/2026 16:55)

China’s economy expands 4.5% in Q3 as AI-related exports offset weak domestic demand

China’s economy grew 4.5% year-on-year in the third quarter of 2026, supported by strong global demand for artificial intelligence (AI) infrastructure, which helped cushion the impact of sluggish domestic consumption and persistent weakness in the property sector.

The latest growth marks an improvement from the 4.3% expansion recorded in the second quarter, when economic activity faced pressure from subdued domestic demand and rising energy costs linked to the Iran war, despite resilient export performance.

According to data released by the National Bureau of Statistics (NBS) on Monday, China’s economy expanded 4.6% during the January-September period, with total economic output reaching approximately 107.11 trillion yuan, equivalent to around USD 15.94 trillion.

The latest figures indicate that overseas demand for AI-related products continues to support China’s growth, even as domestic consumption remains weak and challenges in the property market persist.