Third Quarter Data: Chinese Economy Recovering

Status: 24.10.2022 07:00 am

Surprisingly, China delayed the release of key economic data last week. Meanwhile, a growth rate of 3.9 percent for the third quarter has been announced – more than analysts had expected.

By Eva Lamby-Schmitt, ARD Studio Shanghai

A day after Xi Jinping was appointed General Secretary of the Chinese Communist Party, the National Bureau of Statistics released relatively good economic data. As a result, the gross domestic product of the world’s second largest economy rose by 3.9 percent in the third quarter compared to the same period last year.

The Chinese economy has therefore recovered faster than analysts expected, after the economy was severely slowed down at the beginning of this year due to strict Covid measures and lockdowns.

Released a week late

Economic data was originally scheduled to be released last week. But the publication was surprisingly delayed. The authorities did not justify this step. Observers assumed the decision was related to the party congress that took place at the same time and ended over the weekend.

Economy suffers from zero Covid policy

Despite the upturn, the Chinese economy faces several challenges: the real estate sector is in a deep crisis, demand and consumption are weak and the zero-covid strategy with recurring lockdowns and travel restrictions is causing problems for the economy.

China is unlikely to be able to meet China’s state and party leadership’s original target of 5.5 percent economic growth this year. Most experts expect growth of around three percent. The World Bank expects only 2.8 percent. That would be one of the weakest economic output growth rates in nearly half a century.

Chinese economic growth in third quarter higher than expected

Eva Lamby-Schmitt, ARD Shanghai, October 24, 2022 6:35 AM

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