GDP Growth of 9.8% In The First Three Quarters

By | 20 October 2021

GDP Growth of 9.8% In The First Three Quarters

National Bureau of Statistics says economic recovery still faces challenges

Officials and experts said on Monday that the Chinese economy expect to gain a foothold for the rest of the year. As the slowdown in growth data in the previous quarter has triggered stronger macro policy support and better coordination between multiple policy goals. The National Bureau of Statistics said on Monday that the third quarter’s GDP grew by 4.9% year-on-year. Down from 7.9% in the second quarter, the slowest growth rate in a year.

From January to September, China’s GDP increased by 9.8% year-on-year to 82.31 trillion yuan (12.8 trillion US dollars). Down from 12.7% in the first half of the year. Rain occurred in some areas.

Fu Linghui, spokesperson for the National Bureau of Statistics, said:

“China’s economic recovery remains uneven and unstable despite increasing challenges.”

Fu said that power restrictions in some areas hinder industrial production. But as policy measures increase the supply of power and coal, the impact will be eased, and the slowdown in the real estate industry will have a limited drag on the economy.

China’s industrial production increased by 3.1% year-on-year last month, down from 5.3% in August. The bureau stated that real estate development investment increased by 8.8% in the first nine months of this year. Down from 10.9% a month ago.

Officials and experts said that despite increasing headwinds, multiple factors will work together to ensure the realization of China’s annual economic development goals, including stronger macro policy support, faster growth in consumption and infrastructure investment, and a vibrant high-tech industry .

“China’s financial strength continues to increase, and there is ample room for monetary policy. It can promptly introduce effective measures in accordance with changes in the situation to maintain the stable operation of the economy.” Fu said.

In terms of finance, Xu Xianchun, professor of economics at Tsinghua University,

said that a large number of special local government bonds are expected to be issued in the fourth quarter to support infrastructure investment. In addition, the central bank has set a goal to maintain a moderate increase in credit. He said that this indicates that monetary policy may be relaxed while maintaining overall stability.

According to statistics, in the first nine months of this year, national infrastructure investment increased by 1.5% year-on-year. Total fixed asset investment increased by 7.3% year-on-year during the same period.

Xu added that the overall healthy job market has laid the foundation for the recovery of consumption after the epidemic has stabilized. The Vigorous development of new industries and new formats will provide a key headwind buffer.

Due to the effective containment of domestic COVID-19 cases. The year-on-year growth in retail sales last month recovered from 2.5% in August to 4.4%. The bureau said that the job market has also improved. The urban surveyed unemployment rate in September was 4.9%, compared with 5.1% last month.

Kang Yong, chief economist of KPMG China,

said: “It is also vital that government agencies take more coordinated steps in implementing the policy agenda, and the central government has paid more attention to this.”

Kang said, for example, more use of market mechanisms can be used to promote energy conservation and consumption reduction. Stop the movement of electricity and production administrative restrictions, and better coordinate economic stability and green development.

Experts say that it is wise to provide stronger macro policy support in the form of tools for small businesses. Including exporters who are facing increasing difficulties due to soaring raw material and transportation costs. The lack of external demand related to COVID-19. Certainty.

Li Qiyuan, director of the export department of Jiangsu Jinlong Science and Technology, a knitting and weaving machinery manufacturer, said that so far this year, the company’s export orders have remained stable, but due to the impact of the new crown pneumonia epidemic, the export of knitting machines to India and Vietnam has declined, and there is uncertainty. . -19.

“Small and medium manufacturers are facing obvious difficulties,” said Chen Yanbin, a professor of economics at Renmin University of China.

Chen said that lowering the deposit reserve ratio of some banks and using targeted refinancing tools can increase loans to small businesses and reduce their pressure.

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