Economic recovery: China’s economy grows faster than expected in Q3 – Weak global demand slows export growth | newsletter

As the Beijing Statistics Bureau announced on Monday, third-quarter growth increased more-than-expected by 3.9 percent. After just 0.4 percent in the second quarter, the second-largest economy showed clear signs of recovery. However, more economic and trade figures released on Monday pointed to a mixed picture of the situation.

The data was eagerly awaited as Beijing unexpectedly delayed its release last week. The authorities did not provide a reason for the move. But observers assumed the decision was related to the simultaneous party conference in Beijing that concluded on Saturday.

After the party congress concluded, Chinese State President and Party leader Xi Jinping stressed that China’s economy is “resilient”. China cannot develop in isolation from the world.

Weak global demand further slowed China’s export growth. Exports in September, calculated in US dollars, increased only 5.7 percent compared to the same period last year, Chinese customs reported on Monday.

In the previous month, export machines had already lost momentum and only achieved 7.1 percent growth. Imports also increased in September, as in the previous month, by only 0.3 percent. Exports developed slightly better than experts expected, while imports were slightly worse.

Experts cited high inflation rates in many countries and high interest rates, which affected the global economy, as reasons for the slowdown in China’s foreign trade growth. She said the decline in China’s domestic demand is slowing import development.

While Chinese industrial production rose sharply by 6.3 percent in September, retail sales growth was slower than expected, rising by 2.5 percent. The official urban unemployment rate also rose for the first time in four months by 0.2 percentage points to 5.5 percent.

A tough zero-Covid strategy with lockdowns and other restrictions in particular is slowing the Chinese economy, which is also suffering from a severe real estate crisis, high levels of debt and weak domestic demand.

The government is expected to be well below the original growth target of around 5.5 percent for this year. The World Bank forecasts only 2.8 percent. This will be only the second time in four decades that China’s growth has been so low, after the first year of the 2020 pandemic.

Weak global demand slows Chinese export growth

Weak global demand further slowed China’s export growth. Exports in September, calculated in US dollars, increased only 5.7 percent compared to the same period last year, Chinese customs reported on Monday. In the previous month, export machines had already lost momentum and only achieved 7.1 percent growth. Imports also increased in September, as in the previous month, by only 0.3 percent.

Exports developed slightly better than experts expected, while imports were slightly worse. Experts cited high inflation rates in many countries and high interest rates, which affected the global economy, as reasons for the slowdown in China’s foreign trade growth. She said the decline in China’s domestic demand is slowing import development.

As with last week’s growth figures, the release of foreign trade figures was unexpectedly postponed during the CPC congress without giving any reason. After the party congress concluded, Chinese State President and Party leader Xi Jinping stressed that China’s economy is “resilient”. China cannot develop in isolation from the world.

Chinese trade with Germany declined significantly by 7.8 percent compared to the same period last year. German exports to China decreased by 9.9%. China also exported 5.6 percent less to Germany. On the other hand, while Chinese exports to the European Union increased by 5.6 percent, China’s imports from Europe decreased by 8.4 percent.

China’s foreign trade with the United States also declined significantly by 10.1 percent. Chinese exports to the United States decreased by 11.6 percent, while imports from the United States decreased by 4.6 percent.

Beijing (dpa-AFX)

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