The world’s second-largest economy continues to recover from the damage caused by the coronavirus pandemic, and this fact once more underlines the strength of the country’s economy. Interestingly, China’s factory output rose faster-than-expected in October. According to the National Statistics Bureau, industrial production grew 6.9% in October from a year earlier.
People should take into account that the upbeat figures came as other Asian powerhouses also recovered from their pandemic depths. For example, Japan’s economy reported its fastest quarterly growth on record.
Hopefully, China’s industrial sector staged a formidable turnaround from the damage caused by the pandemic. The country’s government was able to stabilize the situation, and people are willing to spend money to provide an additional boost to activity.
China’s economy and main findings
Interestingly, growth is expected to accelerate in the fourth quarter, thanks to the service sector.
Importantly, in the consumer sector, retail sales rose 4.3% on-year. However, this result failed to meet expectations.
Hopefully, the number of cars sold in the country increased by 12.5% in October, thanks to surging demand for electric vehicles. It is worth noting that domestic tourism also saw a strong rebound over the Golden Week holiday in October.
Moreover, fixed-asset investment rose 1.8% in January-October from the same period in 2019. Interestingly, this result exceeded expectations.
Importantly, China’s economic recovery looks to be accelerating, but rising coronavirus cases in Europe and the U.S. affected the outlook for exports.
Tensions between the U.S. and China continue to affect the economy. Moreover, analysts believe a Biden administration is likely to maintain a tough political stance on China.
Last but not least, China’s economy grew 4.9% in the third quarter from a year earlier. However, annual growth could slow to just over 2% for 2020. The pandemic caused serious damage to the economy, but the country has the potential to reach impressive results.