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– China’s economic recovery accelerated in the third quarter and the country is confident of maintaining current momentum amid effective control of the novel coronavirus and radical efforts by the government to stimulate demand and consumption.
– Seen from the key indicator trends, China’s epidemic prevention and economic recovery are at the forefront of the world, demonstrating the strong resilience and vitality of the economy.
BEIJING, Oct. 19 – China’s economic recovery accelerated in the third quarter and the country is confident of maintaining current momentum amid effective control of the novel coronavirus and radical efforts by the government to stimulate demand and consumption.
Gross domestic product (GDP) expanded 4.9 percent year-on-year in the third quarter, faster than the 3.2 percent growth seen in the second quarter, data from the National Bureau of Statistics (NBS) showed. ) Monday.
In the first three quarters, the country’s GDP expanded 0.7 percent year-on-year, returning to growth after a 1.6 percent contraction in the first half of the year and a 6.8 percent drop in the year. first trimester, the data showed.
To soften the impact of the impact of COVID-19, the government has implemented a series of measures, including more fiscal spending, tax breaks and cuts in interest rates on loans and reserve requirements from banks to stabilize growth. and employment.
As the epidemic is largely controlled domestically, factories and schools have reopened and tourist sites across the country have resumed their usual hustle and bustle.
In the third quarter, leading indicators returned to positive territory, with industrial production rising 5.8 percent and retail sales reporting the first quarterly expansion this year, 0.9 percent higher year-on-year.
The country’s fixed asset investment rose 0.8 percent year-on-year in the first three quarters, reversing a 3.1 percent drop in the first half of this year.
Per capita disposable income increased 0.6 percent in the first nine months, compared with a 1.3 percent decline in the first half.
“Seen from the key indicator trends, China’s epidemic prevention and economic recovery are at the forefront of the world, showing the strong resilience and vitality of the economy,” said Liu Aihua, a spokesman for NBS.
Among the bright spots, new growth drivers, including the internet-driven economy and new infrastructure, have taken a bigger role in driving growth, and the contribution of domestic demand is steadily recovering, Liu said .
Monday’s data showed that consumption drove GDP growth 1.7 percentage points in the third quarter, compared with a 2.3 percent drag on growth in the second quarter.
“Unlocking the potential of the large Chinese market not only demonstrates the country’s basic strategy of expanding domestic demand, it will also facilitate the recovery of the entire world economy,” Liu said.
Despite overall improvements, the foundation for sustainable recovery requires further consolidation due to global uncertainties and uneven performance at home, Liu warned.
“In general, China has the foundation, the conditions and the confidence to maintain the current trend in the fourth quarter and the full year,” Liu added.
In the latest World Economic Outlook report released earlier this month, the International Monetary Fund (IMF) projected that China’s economy will grow 1.9 percent in 2020, 0.9 percentage points above the forecast for June from the IMF, making it the only major economy to experience positive growth. this year.
For future political movements, China should maintain the stability and continuity of macro-control policies to consolidate the foundations for a sustained recovery, while further increasing political support for key areas and weak links to achieve development goals and tasks. throughout the year, said Wen Bin, chief analyst at China Minsheng Bank.
In a research report on the data, Lu Ting, China’s chief economist with Nomura, hopes that China will not add more easing measures or begin to adjust in the near term.
China will carry out what it planned in late May for scheduled budget and government bond issuance, while in monetary and credit policies, the period of rapid credit growth is over, according to the report.
“We do not expect cuts in the mandatory reserve ratio or rate cuts before the end of 2020, but we do expect more liquidity injections through low-profile channels such as medium-term credit facilities and re-loans,” the report said.
