China industrial production and retail sales logged robust growth in October as the economy shrugged off the negative impact of Covid-19, data revealed Monday.
Industrial production grew at a steady pace of 6.9 percent annually in October, the National Bureau of Statistics said. This was faster than the expected increase of 6.5 percent.
Retail sales advanced 4.3 percent on year in October, better than September’s 3.3 percent increase but slower than the economists’ forecast of 4.9 percent.
During January to October period, fixed asset investment grew 1.8 percent from the same period last year versus the expected increase of 1.6 percent.
The unemployment rate fell marginally to 5.3 percent from 5.4 percent in the previous month. The rate came in line with economists’ expectations.
The economic growth is expected to be faster in the fourth quarter, Fu Linghui, a spokesman for the National Bureau of Statistics, told reporters.
Driven by domestic consumption and global demand for medical equipments, the economy had expanded 4.9 percent on a yearly basis in the third quarter.
The International Monetary Fund had upgraded China’s growth projection for this year to 1.9 percent from 1 percent. Growth is forecast to zoom to 8.2 percent in 2021.
Policy stimulus continued to boost investment and industrial output while growth in real retail sales and services activity returned to pre-virus levels, Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said.
The upshot is that the negative shock to the labor market and service sector from Covid-19 now appears to have fully reversed.
As consumption still has room to strengthen further in the near-term and supportive fiscal policy keeping activity in industry and construction strong, the economists expect a period of above-trend economic growth in the coming quarters.
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