BEIJING, Oct. 26 (Xinhua) — The Chinese economic system will preserve a constructive restoration momentum within the fourth quarter of 2023 as third-quarter financial knowledge beat expectations, in response to Zhu Haibin, chief China economist at J.P. Morgan.
In a latest interview with Xinhua, the economist mentioned that shortly after China launched its financial knowledge for the primary three quarters, J.P. Morgan revised its forecast for China’s gross home product (GDP) progress upward in 2023 from 5 % to five.2 %.
“China’s third-quarter GDP beat expectations. Following the better-than-expected economic data for August, the economic performance in September again beat our expectations, as major indicators such as industrial production, retail sales, and exports were surprisingly better,” Zhu defined the upward revision.
“The projected 5.2-percent growth remains an excellent growth rate around the world,” he mentioned.
The Chinese economic system expanded 4.9 % 12 months on 12 months within the third quarter regardless of a excessive comparative base within the corresponding quarter final 12 months. In the primary three quarters of 2023, the economic system grew 5.2 %, in response to knowledge launched by the National Bureau of Statistics (NBS) earlier this month. Government officers mentioned these outcomes laid a strong basis for realizing the nation’s annual 5-percent progress goal for 2023.
Zhu famous that the brand new vitality business and infrastructure sector noticed comparatively good performances within the first three quarters.
“In the first three quarters of 2023, the output of solar cells soared by more than 60 percent year on year; the output of new energy vehicles also increased by over 30 percent, which maintained a relatively high growth rate,” he mentioned.
“After the impact of the COVID-19 epidemic subsided, the consumption of services such as catering, accommodation, tourism, and transportation proliferated and saw a remarkable recovery,” Zhu mentioned.
He talked about that the financial savings fee amongst rural households fell notably within the third quarter, suggesting that revenue expectations had been enhancing amongst rural migrant staff and low- and middle-income households amid enhancements within the manufacturing and building sectors.
According to an NBS survey, the variety of the labor power from rural areas working within the cities rose 2.8 % 12 months on 12 months as of the top of the third quarter. The improved expectations for revenue progress among the many migrant staff helped increase consumption.
The economist added that amid the sluggish world financial restoration, China’s exports have proven robust resilience. “On one hand, diversification of export destinations has helped stabilize foreign trade. On the other hand, exports of automobiles rose rapidly, and electronic products exports also showed a rapid recovery trend.”
According to the China Association of Automobile Manufacturers, China exported practically 3.4 million autos within the first 9 months of this 12 months, up 60 % 12 months on 12 months. In the primary half of 2023, China overtook Japan because the world’s largest car exporter.
Customs knowledge additional confirmed that China’s exports of cellphones and computer systems in September rose 124.9 % and eight.3 %, respectively, from the earlier month.
Zhu mentioned that after a gathering held by the Political Bureau of the Communist Party of China (CPC) Central Committee on July 24, a raft of coverage measures to develop home demand, increase confidence, and stop dangers had been launched, which helped consolidate the nice momentum of the economic system.
“An array of measures such as fiscal and monetary policies, real estate policy relaxation, and those attracting foreign investment, were taken among a wide spectrum of areas in a relatively short period. These measures were strongly targeted and formed policy synergy,” Zhu added.
Looking into the fourth quarter, Zhu added sustained measures are wanted to consolidate the restoration. “The key to maintaining the medium-high growth of the Chinese economy lies in high-quality development, innovation, and industrial upgrading. Industrial upgrading includes the upgrading of the manufacturing industry and also the upgrading of the service industry and improving consumption quality.”