Recently, foreign media continue to pay close attention to China’s brilliant economic data in the third quarter, believing that China’s economic recovery signs have expanded from industrial prosperity to the consumer sector. The Financial Times reported on the 19th that China’s GDP in the third quarter grew by 4.9% year-on-year, much higher than the 3.2% increase in the second quarter. This marked a sharp rebound in China’s economy from the historic decline at the beginning of this year. Signs that the supported, industrial boom-driven recovery has extended to the consumer sector.
Zhu Chaoping, a global market strategist at JPMorgan Chase Asset Management, said that domestic economic activity is expected to further normalize in the next few quarters. When consumer confidence increases, consumption may replace investment and become the main contributor to domestic demand.
Eswal Prasad, an expert on Chinese financial affairs at Cornell University, believes that China may become the only major economy in the world to achieve positive growth this year. Short-term growth seems to be no problem at all. The challenge now is to rebuild business and consumer confidence. To revive private investment and maintain strong household consumption growth.
Qu Hongbin, co-head of Asian Economic Research at HSBC, believes that global demand is still shrinking under the influence of the epidemic, but Chinese exports seem to have been performing well, and may even be grabbing market share from other countries. In addition, private consumption is gradually catching up. ". According to the report, China’s strong economic performance has helped boost the international demand for its assets. This year, the RMB exchange rate rose by 3.8%. The exchange rate of China’s onshore renminbi against the US dollar fell slightly to 6.7011 yuan per US dollar, but it was still close. 18-month high.
In addition, foreign media believe that the third quarter data further confirms China's relatively strong economy. The Wall Street Journal, The Associated Press, The New York Times, and the British Broadcasting Corporation (BBC) all reported on the 19th that China’s third-quarter GDP grew by 4.9% year-on-year, indicating that China’s economy has been hit hard by the epidemic six months ago. Back to the growth track before the epidemic. The above data is close to the 5.5% to 6% economic growth expected in early 2020.
The growth data in the third quarter further confirmed the relatively strong momentum of China's economy and brought the year-on-year growth rate of the Chinese economy in the first nine months of this year to 0.7%, entering a positive range. Other economic indicators provide more signs of strengthening. In September, the nationwide urban survey unemployment rate, which is China’s main unemployment rate indicator, fell to 5.4% from 5.6% in August, which was lower than the 6% target set by the Chinese government.
If the second quarter represents the recovery of China's industrial sector, then the third quarter will mark the recovery of China's consumer sector. With the new crown epidemic in China almost eradicated, relevant departments encourage consumers to go out of their homes and open their wallets.
At the same time, foreign media believe that the Chinese economy is an important growth engine in the world. Bloomberg reported on the 19th that the figures released by China convinced the market that China's recovery is on track. China's aggressive containment measures in the early stages of the new crown epidemic have enabled its economy to rebound faster than any other country. For the world economy, this is still a rare piece of good news. The world economy is still trying to get rid of the worst decline since the Great Depression. Analysts believe that China’s economic recovery is encouraging and hopeful information for the rest of the world, proving that as long as the epidemic is contained, the economy can recover.
