FX.co ★ China’s economy expands more than anticipated

According to the report provided by the National Bureau of Statistics of China, in the third quarter of 2022, the country’s economy expanded by 3.9% compared to the same period in 2021. Analysts at Trading Economics suppose that the economic growth pace has significantly accelerated. Notably, from April to June, China’s economy grew by 0.4%, whereas economists had expected a bigger rise of 3.4-3.5%.

From January to September 2022, the Chinese GPD increased by 3%. It is below the target level of 5.5% set by China’s authorities for the current year. In September, retail sales advanced by 2.5%, showing the slowest rise in the last four months. According to the forecast, the indicator should have grown by 3.3%.

The National Bureau of Statistics of China emphasizes an increase in retail sales of cars (14.32%), oil products (10.2%), and telecommunication equipment (5.8%). Meanwhile, retail sales of construction materials decreased by 8.1%, furniture – by 7.3%, and clothing – by 0.5%.

In the previous month, Chinese industrial production advanced by 6.3% compared to a rise of 4.2% recorded in August. It is the most noticeable growth in the last seven months. Economists had expected an increase of 4.5%.

During the nine months of the year, industrial production grew by 3.9% compared to the same period in the previous year. Notably, manufacturing production surged by 6.4%, whereas a jump in the mining sector totaled 7.2%. Energy production inched up by 2.9%.

During the January-September period, investments in China’s main assets also soared. However, there is a fly in the ointment. Thus, in September, the unemployment rate jumped to 5.5% from 5.3% in August. It is the highest level recorded since June 2022. The acceleration of the unemployment rate surprised analysts who had foreseen a decline to 5.2%.