BEIJING, Sept. 29 -- China's economy maintained steady growth in the third quarter with a positive outlook, according to a government think tank report released Friday.

Industrial production was basically stable, with new growth momentum gathering in the third quarter, said the report from the National Academy of Economic Strategy (NAES) of the Chinese Academy of Social Sciences.

Corporate profits saw fast growth during the period, fiscal revenue picked up and foreign trade continued to increase, the report said.

The balance of payments also improved in the quarter, while the yuan's exchange rate moved flexibly against the U.S. dollar, the report noted.

In the fourth quarter, the economy may face challenges due to downward pressure on property and infrastructure investment growth, said Wang Hongju, an NAES researcher.

Meanwhile, Wang pointed to several positive factors. The global economy will likely continue to recover and support an increase in exports in the fourth quarter, and private investment is expected to maintain stable growth, he said.

The NAES report suggested balancing deleveraging efforts with pro-growth measures with a proactive fiscal policy and structural cuts in banks' reserve requirement ratios.

China's economy expanded 6.9 percent for the first half of 2024, above the government's full-year target of around 6.5 percent.