Chinese economy remains stable in October, showing resilience in the face of challenges
Lujiazui photo: VCG
China’s economy steadily recovered in October, boosted by better-than-expected performance in the retail sector and growth in industrial production, data from the National Bureau of Statistics showed on Monday. Analysts pointed out that China’s overall economic performance represented the country’s strong economic resilience despite multiple challenges.
In October, the country’s industrial production recovered, increasing 3.5% year-on-year, from 3.1% in September, while industrial value added from January to October rose 10.9% year-on-year. annual.
Retail sales of consumer goods also rose in October, with the total amount reaching 4.05 trillion yuan ($ 630 billion), up 4.9% year-on-year and 0.5 percentage points from more than the previous month, while the total amount from January to October reached 35.8 trillion yuan, an increase of 14.9% from 2020.
“Although China was hit by sporadic outbreaks of COVID-19, energy shortages and extreme weather conditions in October, the country’s economy has remained relatively resilient,” Cong Yi, professor at the ‘Tianjin University of Finance and Economics.
Cong noted that China has a large population, and to date, 400 million people have reached middle income level, so the consumption levels of Chinese residents have remained stable; in the meantime, new consumption patterns continue to emerge, returning with stable supply and demand.
The figure measuring the country’s total investment in fixed assets from January to October increased by 6.1% on an annual basis, amounting to 44.58 trillion yuan, of which investment in real estate developments increased by 7.2%.
Fu Linghui, an NBS spokesperson, also said on Monday that signs that may look like stagflation are the result of short-term factors such as soaring international commodity prices that have tightened supply and raised prices. production prices for some industries.
Total merchandise imports and exports also grew rapidly, and the country’s overall trade structure continued to improve in October, with a total trade value reaching 3.33 trillion yuan, an increase of 17.8 percent year-on-year. , exports and imports increasing by 20.3%. and 14.5% respectively.
Cong said China’s exports have increased significantly through an economy-wide industrial upgrade, with the development of high-tech manufacturing industry also showing great momentum.
Moreover, employment in the country has remained stable, with a total of 11.33 million new jobs created across the country from January to October, meeting the annual target ahead of schedule. The polled urban unemployment rate stood at 4.9% in October, unchanged from September and down 0.4 percentage point from the same period in 2020.
Cong noted that the Chinese economy will maintain a stable and gradual trend in the fourth quarter, and overall growth will not change significantly.
“The share of new energy sources will target significant growth. For example, the value added of high-tech manufacturing industry grew 14.7% year-on-year in October, and the production of new energy vehicles increased 127.9% from 2020, showing that the China has stepped up efforts to adapt. its industrial structure, ”said Cong.
Looking ahead, the BNS noted that challenges remain in a complex and uncertain international environment.
In addition, Cong pointed out that alongside the pandemic combined with international political and economic volatility, the Chinese real estate market has also aroused public concern. The government will further strengthen regulations to ensure timely settlement of properties and adhere to the principle that “housing is for living, not for speculating”.