Official figures show that the economic slowdown in China is getting worse

China’s economy grew at its slowest pace in the third quarter since early last year as the country struggles to boost flagging growth.

On an annual basis, gross domestic product (GDP) rose 4.6% in the three months to the end of September. according to China’s National Bureau of Statistics. That’s down from the previous quarter and below the government’s target of “around 5%” for this year.

But it was slightly better than analysts expected, while other official figures released on Friday, including retail sales and factory production, also beat forecasts.

Beijing has announced a series of measures in recent weeks to support growth.

This is the second quarter in a row that China’s official measure of economic growth has fallen below the 5% target, adding to the government’s concerns.

“The government’s growth target for this year now appears to be in serious jeopardy,” Eswar Prasad, former head of the International Monetary Fund’s (IMF) China department, told BBC News.

“In order to achieve the goal, a significant growth spurt through economic stimulus is required in the fourth quarter.”

However, Moody’s Analytics economist Harry Murphy Cruise was more optimistic. The stimulus measures “are expected to push the economy toward its annual target of about 5%,” he said.

“But more is needed if officials want to address the structural challenges in the economy.”

Official figures also showed that new home prices fell at their fastest pace in almost a decade in September, suggesting the downturn in the property sector is worsening.

“It’s no surprise that the real estate market remains the biggest drag on China’s growth,” said Lynn Song, chief Greater China economist at banking giant ING.

“New investment is unlikely to recover significantly until prices stabilize and property inventory declines. Until then, real estate will continue to be a significant headwind to growth.”

Earlier on Friday, China’s central bank said it had held a meeting to ask banks and other financial institutions to boost lending to support growth.

Last month, the People’s Bank of China (PBOC) announced the country’s largest stimulus package since the pandemic, including major cuts in interest rates and mortgage rates.

The plans also included help for the weakening stock market and measures to encourage banks to lend more to companies and individuals.

Since then, the Treasury and other government agencies have unveiled further plans to boost economic growth.

The world’s second-largest economy has been hit by a range of challenges, including a housing crisis and weak consumer and business confidence.