China's economic slowdown has deepened, official figures show

China's economy expanded at its slowest pace in the third quarter since early last year, as the country struggles to raise 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 “around 5%” target for this year.

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

In recent weeks, Beijing has announced several measures aimed at supporting growth.

It is the second quarter in a row that China's official measure of economic growth has fallen below the 5% target, raising official concerns.

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

“Achieving the target will require a substantial stimulus-fueled boost to growth in the fourth quarter.”

But Moody's Analytics economist Harry Murphy Cruz was more optimistic. The stimulus measures “could move the economy to around 5% of its target for the year”, he said.

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

Official figures also showed that new house prices fell at the fastest pace in nearly a decade in September, indicating that the slump in the property sector is worsening.

“The property market surprisingly remains the biggest drag on China's growth,” said Lin Song, chief Greater China economist at banking giant ING.

“There is unlikely to be a significant recovery in new investment until prices stabilize and housing inventories decline…until then there will be a significant headwind to property growth.”

Earlier on Friday, China's central bank said it held a meeting to urge banks and other financial institutions to increase lending to support growth.

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

The plan includes aid to flagging stock markets and measures to encourage banks to lend more to businesses and individuals.

Since then, the Ministry of Finance and other government agencies have unveiled more plans aimed at boosting economic growth.

The world's second-largest economy faces a number of challenges, including a property crisis, as well as weak consumer and business confidence.