Beijing (Reuters) – The Chinese economy recovered more strongly than expected in the third quarter, despite corona lockdowns in major cities such as Shanghai, the real estate crisis and the global economic slowdown.
The gross domestic product of the world’s second largest economy after the USA rose by 3.9 percent from July to September compared to the same period last year, as the statistics office announced on Monday in Beijing. Analysts polled by the Reuters news agency had expected slower growth of 3.4 percent after just 0.4 percent growth in the previous quarter. However, the industry in particular has shown itself to be in better shape recently and has increased its production surprisingly strongly. However, China’s strict zero-corona policy – which repeatedly goes hand in hand with tough lockdowns, even in economically important centers – and global recession risks as a result of the Russian war against Ukraine threaten the upswing.
“The increase is a result of the end of the lockdown,” said Alexander Krüger, chief economist at Bankhaus Hauck Aufhäuser Lampe. “With domestic demand and the real estate sector weakening, momentum is unlikely to increase any further.” The zero-Covid strategy is still in place, and demand from abroad is also weakening. Important trading partners such as Germany are on the threshold of recession.
President Xi Jinping, who was confirmed for a third term as General Secretary of the Chinese Communist Party over the weekend, assumes that his country will remain on a growth course. “The Chinese economy has great resilience, great potential and great scope,” Xi told reporters on Sunday. “Her strong fundamentals will not change and she will remain on a positive path for the long term.”
REAL ESTATE PRICES ARE FALLING
Economists surveyed by Reuters only believe the People’s Republic will grow by 3.2 percent this year. This would clearly miss the official target of around 5.5 percent. Economically, it would be one of the weakest years of growth in almost half a century. The government in Beijing surprisingly postponed the publication of GDP data last week, which was actually planned for October 18th. Reasons were not given.
Despite higher growth, the official unemployment rate in the cities rose to 5.5 percent in September, the highest level since June. For job seekers between the ages of 16 and 24, it is as high as 17.9 percent. New home prices fell for the second month in a row in September, reflecting continued homebuyer caution in this economically important sector. Many indebted property developers are struggling to deliver their projects on time.
(Report by Ryan Woo and Ellen Zhang, written by Rene Wagner, edited by Ralf Banser – If you have any questions, please contact our editorial team at [email protected])