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BEIJING: China intensified its economic recovery in the third quarter from the impact of the coronavirus, but fell short of forecasts, pointing to continued challenges for one of the few global growth drivers this year.
Gross domestic product grew 4.9 percent in the July-September period from a year earlier, the National Statistics Office said on Monday (Oct. 19), slower than the 5.2 percent median forecast. by analysts in a Reuters poll and following 3.2 percent. growth in the second quarter.
The world’s second-largest economy grew 0.7 percent in the first nine months from a year earlier, the statistics office said.
Policymakers globally are pinning their hopes on a robust recovery in China to help restart demand as economies grapple with heavy lockdowns and a second wave of coronavirus infections.
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China has been steadily recovering from the decades-long low growth seen in the first months of the year caused by the impact of the coronavirus. But several recent indicators have pointed to a broader rebound in consumption in the third quarter as well.
In quarter-on-quarter terms, GDP rose 2.7 percent between July and September, the bureau said, compared with expectations for a 3.2 percent increase and an 11.5 percent increase in the previous quarter.
Industrial production grew 6.9 percent in September over the previous year, after an increase of 5.6 percent in August, while retail sales grew 3.3 percent, compared to an increase of 0, 5 percent in August.
Investment in fixed assets rose 0.8 percent in the first nine months from a year earlier, after falling 0.3 percent in the first eight months.
The government has implemented a number of measures this year, including more tax spending, tax relief, and cuts in loan rates and reserve requirements from banks to revive the coronavirus-hit economy and support employment.
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While the central bank stepped up policy support earlier this year after widespread travel restrictions stifled economic activity, more recently it has paused at further easing.
The International Monetary Fund has forecast a 1.9% expansion for China for the full year, the only major economy expected to report growth in 2020.
Prime Minister Li Keqiang warned in early October that China needs to make strenuous efforts to achieve its economic goals for the whole year, citing a complex internal and external environment.
