China's Q3 Economic Growth Rate at 4.9%...Below Expectations but Growth Continues for Two Consecutive Quarters

Retail Sales Twice as High as Expected
Analysis Attributes Growth to Government Domestic Demand Activation Policies

[Image source=EPA Yonhap News]

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China's economic growth rate recorded 4.9% in the third quarter.

After plunging to minus 6.8% in the first quarter due to the impact of the novel coronavirus infection (COVID-19), China's economy succeeded in a 'V'-shaped rebound in the second quarter and continued its growth trend in the third quarter.

China's National Bureau of Statistics announced on the 19th that the gross domestic product (GDP) in the third quarter increased by 4.9% compared to the same period last year. Although this is lower than the market expectation of 5.5%, it showed growth for two consecutive quarters. Depending on the survey agency, estimates ranged from 4.8% to 6.2%.

In particular, supported by the Chinese government's domestic demand activation policy, retail sales increased by as much as 3.3% compared to the same month last year. This is double the market expectation of 1.6%. Industrial production grew by 6.9% compared to the same month last year.

As the Chinese government focused on activating domestic demand after effectively declaring victory over COVID-19, third-quarter growth was already anticipated. Key indicators previously released, such as September export-import statistics, consumer price index (CPI), and manufacturing purchasing managers' index (PMI), suggested higher growth than in the second quarter.

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