Beijing: China's long-delayed economic data showed a mixed recovery in the third quarter of 2022, with unemployment rising and retail sales weakening in September despite a pickup in growth. GDP grew 3.9 per cent in the July-to-September period from a year ago, rebounding from almost stagnant growth in the second quarter when Shanghai was still in lockdown.
The data were postponed by nearly a week as the country held its 20th Party Congress - a key political event during which President Xi Jinping secured a third term as head of the ruling Communist Party and consolidated his power.
The monthly indicators for September painted a weaker picture. After four months of declines, unemployment rose to 5.5 per cent in September from 5.3 per cent in August. Retail sales growth slowed to 2.5 per cent, compared to August's 5.4 per cent increase and far lower than the 3 per cent estimated.
Industrial production rose 6.3 per cent in September from a year earlier, more than August's 4.2 per cent rise and beating the 4.8 per cent forecast from economists. Fixed asset investment rose 5.9 per cent in the first nine months of the year, mainly in line with expectations.
Manufacturing provides the heft
The data was "mildly surprising on the upside," largely due to the manufacturing sector, said Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group Ltd. The results will reinforce the government's policy stance, he said, with a focus on "prudent and targeted" efforts.
The economy "overcame" the negative impact from "multiple unexpected shocks", the NBS said in a statement accompanying the data, adding that main indicators "have recovered and steadied to remain within a reasonable range".
The country also released trade data Monday showing export growth slowing in September. Exports in US dollar terms expanded 5.7 per cent last month from a year earlier, down from 7.1 per cent in August, while imports rose 0.3 per cent, unchanged from the prior month. That data was also delayed during the party congress.
Still fighting Covid
China is trying to stage a recovery as the third quarter was threatened by a smattering of smaller Covid outbreaks across the nation that resulted in mobility curbs and which dampened consumer and business confidence. During a speech after the close of the congress, Xi said China's economy is "resilient" and vowed to deepen economic ties with other countries.
"China cannot develop in isolation from the world. The world's development also needs China," Xi said, addressing an audience of Chinese and overseas journalists.
