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China’s economic activities continued to gain momentum in November and showed a full recovery At the end of a turbulent year, the world’s second-largest economy is on a stronger footing.
Official data released Tuesday showed that last month, major economic indicators, including industrial value added, investment and consumer spending, accelerated their growth, fueling job growth and lowering the unemployment rate.
China’s National Bureau of Statistics announced that China’s industrial value added in November rose 7.0% year-on-year, the fastest growth rate in more than two years. The rise in November was slightly higher than October’s 6.9% and was also higher than the 6.8% forecast by economists previously surveyed by The Wall Street Journal.
The Chinese government quickly resumed work and production in the second quarter, and the industrial sector took the lead to recover from the impact of the new corona epidemic earlier this year. Economists had predicted that China’s industrial production would slow down in recent months because the resurgence of the epidemic abroad could weaken foreign demand, but official Chinese data, including data from Tuesday, broke these forecasts.
According to Li Wei, an economist at Standard Chartered PLC, China’s economy continued to gain momentum in November thanks to previous policies of credit easing and strong demand for exports. He said the bank had previously expected China’s economy to grow 5.5% year-on-year in the final quarter of 2020, but stronger-than-expected performance in October and November may boost the real growth rate of the Chinese economy to exceed expectations.
According to data from the National Bureau of Statistics of China, investment in China’s fixed assets, including expenses for manufacturing, real estate and infrastructure projects, increased 2.6% from January to November. The growth rate has accelerated from 1.8% in January-October and also surpassed the 2.5% previously expected by economists.
According to the National Bureau of Statistics, the surveyed urban unemployment rate in China fell for the fourth consecutive month in November, to 5.2%. It was 5.3% in October.
National Bureau of Statistics spokesman Fu Linghui said at a press conference on Tuesday that economic growth in the fourth quarter is expected to continue to accelerate compared to the third quarter, because both production and demand are recovering. constantly.
China’s gross domestic product (GDP) in the third quarter increased 4.9% year-on-year, a sharp rebound from the 6.8% contraction in the first quarter. At that time, to curb the spread of the new corona epidemic, China’s economic activities almost stalled.
Strong foreign demand for products made in China has benefited the Chinese economy, especially the export and industrial sectors. At the same time, productive activities in other countries and regions of the world have been paralyzed by the epidemic, and economic recovery has also slowed due to the counterattack of the epidemic. Stimulus measures by Western governments aimed at helping consumers maintain their spending on staples this year, especially spending on protective equipment and electronics for home offices.
However, Standard Chartered economist Li Wei said overseas demand will eventually fall, and the promotion of the new crown vaccine is expected to shift higher global consumption to spending on services. He said that to maintain growth momentum, the country of China needs to catch up and offset the impact of declining foreign demand.
China’s total retail sales of consumer goods in November increased 5.0% year-on-year, up from 4.3% in October, but lower than the 5.5% previously expected by economists surveyed, indicating that China still needs boost long-term economic growth. Hard work. Total retail sales of consumer goods is a key metric for measuring consumer spending.
The Political Bureau of the CPC Central Committee stated at a meeting last week that the government should strive to keep the economy operating within a reasonable range next year and adhere to the strategy of expanding domestic demand.
Analysts generally expect the Chinese government to return to normal from the expansionary stance this year, slow credit growth and launch a smaller fiscal stimulus plan in 2021. However, they also noted that the pace of return to positions normal will be gradual, as officials have said they hope to avoid a “political cliff” that could undermine economic recovery.
Fu Linghui, a spokesman for the National Bureau of Statistics, said on Tuesday that as the world economy is struggling with the impact of the epidemic and economic recovery, efforts are needed to consolidate the foundations of economic stability and sustainable development.
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