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- China's Q3 GDP grows 4.5% as AI-driven exports offset weak domestic spending
China's economy grew 4.5% year on year in the third quarter of 2026, up from the previous quarter but below the 5% expansion recorded from January to March, putting it at the bottom of Beijing's 4.5%–5% annual target, according to official data from the National Bureau of Statistics. The BBC reported that global demand for chips and other components used to build AI data centres helped lift high-tech goods sales by 14.3%, while battery and industrial robot production each grew more than 29%, partly offsetting weak household spending. Property investment fell more than 20% in the first nine months from a year earlier, and analysts cited weak domestic demand, trade tensions and uncertainty over AI investments as risks; Techmeme's summary states Q2 growth was 4.3%, a figure the BBC text does not give.
BBC Technology · 🔥 14 - IMF meetings: Middle East conflict and AI boom complicate central bank inflation fight
At the IMF-World Bank annual meetings in Bangkok, Bank of Korea Governor Shin Hyun-song said South Korea sits at the intersection of two powerful forces — Middle East conflict and the AI boom — whose cost-push and demand-pull effects are worsening inflation. South Korea raised rates twice in July and August to 3%, its first back-to-back hikes since January 2023, while the Bank of Japan hiked in June and September, India began its first tightening cycle in more than three years, Australia raised rates four times and the Philippines lifted rates in August. A July Bank for International Settlements report said data center, semiconductor and related infrastructure spending has reached about 1% of GDP in the most affected economies, with AI driving both demand and supply and blurring the business-cycle signals central banks rely on. Moody's Analytics economist Stefan Angrick said rate hikes do little against supply-side shocks such as military conflict or commodity disruptions, though the AI boom has so far appeared relatively insensitive to rate moves, and the IMF says global public debt is near its highest level since the end of World War II.
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