China’s economy likely grew at its weakest pace in more than five years in the third quarter as a property downturn weighed on demand, a Reuters poll showed, raising the chances of more aggressive policy steps that may include cutting interest rates.

The economy may have expanded 7.3 per cent in the third quarter from a year earlier – the weakest reading since the first quarter of 2009, when growth hit 6.6 per cent during the height of the global crisis, according to a poll of 20 economists.

None of the economists believed Q3 growth will dip below 7 per cent, although four pencilled in 7.1 per cent and one expected 7 per cent.

The economy expanded by 7.5 per cent in the second quarter and 7.4 per cent in the first.

Top leaders have ruled out any massive stimulus as China struggles to deal with piles of local government debt

“GDP growth is expected to slow to around 7.3 per cent in the third quarter as property investment growth slides and manufacturing deflation worsens,” Tang Jianwei, an economist at Bank of Communications, said in a note.

Softer domestic demand, linked largely to the cooling property market, probably pulled down growth in China’s imports, investment and retail sales to multi-month or multi-year lows in September, a related poll showed.

Premier Li made clear the government will tolerate growth slightly lower than the targeted 7.5 per cent this year and rely more on reforms to generate new growth drivers.

Top leaders have ruled out any massive stimulus as China struggles to deal with piles of local government debt, the hangover from a 4 trillion yuan ($652 billion) spending package implemented in 2008-2009 to help cushion the country from the global financial crisis.

President Xi Jinping and Premier Li Keqiang are seeking to push reforms to put the world’s second-largest economy on a more sustainable footing over the long term.

The government is likely to cut its annual growth target to around 7 per cent in 2015, government economists said.