China’s major economic indicators eased worries of outside world

2018-11-19
People’s Daily

China’s economy operated within a reasonable scope in October, with progress achieved and stability ensured, the National Bureau of Statistics (NBS) told a news conference on Nov 14. The changes of major economic indicators, such as production, demand, employment, commodity prices, and structural adjustments, reflected three major characteristics of the national economy.

The demand and production were generally stable. In October, the added value of industrial enterprises above designated size expanded by 5.9 percent year-on-year. The production index of the service sector was up 7.2 percent from a year ago.

Investment was up in October. China’s investment in the first 10 months grew by 5.7 percent year-on-year, 0.3 percentage points higher than that in the first three quarters, registering a slightly upward trend in two consecutive months.

Imports and exports maintained rapid growth. In October, exports grew by 20.1 percent, 3.2 percentage points higher from a month ago. The growth of imports stood at 26.3 percent, up 8.8 percentage points from a month ago.

Secondly, employment and commodity prices remained stable in October. The surveyed unemployment rate in urban areas was 4.9 percent last month, while that in 31 major cities was 4.7 percent.

The growth of consumer prices was 2.5 percent higher compared with that in the same period last year, the same as that in the previous month. The figure marked an end to the continuous expansion in four straight months. The commodity prices reflected a generally steady frame in which supply and demand were balanced.

Thirdly, structural adjustments steadily advanced in October. The industrial production continued to move up to medium and high ends. In October, the year-on-year value-added growth of high-tech manufacturing industry was 12.4 percent, up 1.2 percentage points from September, while the value-added of strategic emerging industries increased 10.1 percent from a year ago.

In the January-October period, the investment in high-tech manufacturing was up 16.1 percent, while that in high-tech services went 11 percent up, maintaining a moderately rapid speed. A rapid growth of the total retail sales of consumer goods was reported in the first 10 months. In the period, communication equipment and cosmetics both registered double-digit growth.

Liu Aihua, spokesperson of the NBS, eased the worry of the outside world that China’s economy might fall in the future at the news conference.

In the Jan-Oct period, major economic indicators remained in a reasonable scope, and the fundamentals for stable economic operation remained unchanged, the spokesperson said, adding that other indicators such as production, demand, employment, consumer prices and international balance of payments also grew steadily. In addition, new driving force was expanded, structural adjustments advanced, and the quality and profits of the economy improved, Liu introduced.

China has full potential and advantages in long-term development, the spokesperson continued. With a massive market of over 1.3 billion people and an expanding size of middle-income earners, China enjoys big potential for consumption upgrading.

The country also owns a relatively complete industrial system and increasingly perfected infrastructure. As the supply-side structural reform is further advanced, the country’s supply ability and quality will be gradually improved to adapt to people’ growing needs for consumption, Liu said.

China has a large labor market and therefore a comparative advantage in this sector. The country has a labor force of more than 900 million people, in which 170 million have received higher or vocational education.

In addition, the country’s macro policies have wide space of maneuver. China’s inflation rate is low, so is its rate of fiscal deficit. The debt rate of the Chinese government is maintained within a reasonable scope, and the foreign exchange reserves at a high level. All these facts leave a large room for macroeconomic policies.