China’s post-pandemic economic recovery continues to gain pace
China’s economic recovery from Covid-19 slump is gaining momentum and broad-based acceleration of the economy continues in October, data showed on Monday.
Industrial production rose faster than expected in October, climbing 6.9% vs 6.5% forecasted, pointing to impressive turnaround in China’s industrial sector from the coronavirus pandemic paralysis earlier this year.
Retail sales accelerated by 4.3% in October from 3.3% in September, hitting the highest levels since January, as rising consumer spending after China largely put coronavirus under control, further boost economic activity.
Policy stimulus continues to boost investments and industrial output while growth in retail sales and services returned to pre-pandemic levels.
Metal and energy sectors increased production in October, as reopened economy fueled demand, with aluminium and crude oil hitting record levels.
China’s economic growth is expected to accelerate in the fourth quarter, as recovery in services sector maintains momentum and consumer sector is boosted by improved appetite for spending.
The China’s central bank is unlikely to rush and start tightening policy, as consistent run of improving data points to accelerating economic recovery and suggests such action.
The PBOC already rolled out a number of measures, including more fiscal spending, cuts in lending rates and tax relief and estimates that any move to tighten policy at this stage could hurt the economic recovery.