Editor’s Note: Chen Jiahe is the Director of Investments at Novem Arcae Technologies. The article reflects the views of the author, and not necessarily those of CGTN.
On October 18, China’s National Bureau of Statistics announced the country’s latest economic data for the third quarter of this year. The latest financial data has shown the market that the Chinese economy is gradually recovering in the post-COVID period and is playing an important role in the global economic recovery.
Overall, China’s total GDP in the first three quarters of 2021 increased 9.8% from a year ago, after deducting the impact of inflation. This high growth rate is in part the consequence of a low base in 2020, as COVID-19 hit the Chinese economy with a surprise at that time and the anti-pandemic measures took a heavy toll on the economy. .
In the third quarter of 2021 alone, China’s total GDP grew 4.9% from a year ago. As the third quarter of 2020 was a stable period for the Chinese economy and the impact of the pandemic was not as strong as the previous two quarters, the growth rate expressed in the third quarter of 2021 compared to 2020 can be considered. as a more reliable indicator of China’s economic growth rate in this post-COVID era.
Within the different sectors of the economy, the consumer sector has strongly supported economic growth. In the first three quarters, the total value of social retail reached 31.8 trillion yuan, 16.4% higher than a year ago. In September alone, the total amount of social consumption increased 4.4% from the same month in 2020 and is 1.9% faster than data reported in August.
Internet shopping is one of the major contributors to the consumer sector of the Chinese economy. For the first three quarters of 2021, the total amount of Internet shopping in China reached 9.2 trillion yuan ($ 1.43 billion), up 18.5 percent from a year ago. This large consumer sector absorbs almost a third of China’s total retail consumption, showing us that internet shopping is clearly one of the most important parts of the consumer market in China.
In this new age of the Internet, many businesses are now keen to conquer their territories on the Internet, rather than on those traditional brick and mortar malls. For example, over the past two years, driven in part by social quarantine measures taken in the COVID-19 situation, internet shopping for fresh produce has increased rapidly in China. Today, the lack of appearance in traditional shopping malls can mean little harm to businesses, but the considerable lack of appearance on the Internet can greatly harm a business.
China’s GDP growth. / CGTN
China’s GDP growth. / CGTN
In the agricultural sector, the increase in pork production has contributed significantly to the reduction of consumption inflation. As of the end of the third quarter of 2021, China has a total of 438 million pigs, up 18.2% from a year ago. This caused the price of pork in China to drop rapidly. As the price of pork plays an important role in the Chinese Consumer Price Index (CPI), the consumption inflation of the Chinese economy has been contained. In the first three quarters, the total CPI rose only 0.6 percent. Although the PPI rose 6.7% over the same period, its impact has yet to be felt by the consumer sector.
As the world’s second-largest economy, the Chinese economy has become a strong support for the global economy in this global pandemic. China’s international trade data has shown us that this support has been significant. In the first three quarters of 2021, China’s total international trade amount was 28.3 trillion yuan ($ 4.4 trillion), 22.7 percent more than a year ago. In September alone, total international trade amounted to 3.5 trillion yuan ($ 540 billion), 15.4 percent more than a year ago.
While the economy is functioning stably, the employment situation in China is putting the market at ease. In September, the urban unemployment rate was 4.9%, 0.2% lower than data released in August and 0.5% lower than the same month last year. A stable labor market not only brings stability to Chinese society, it also brings sufficient consumption capacity to the economy.
The support that a stable labor market can give to the economy, especially the consumption part of the economy, can also be seen by looking at the growth of citizens’ incomes. Data shows that in the first three quarters of 2021, China’s average disposable income was 26,265 yuan ($ 4,084), 10.4% more than a year ago. This rapid income growth has become one of the strongest cornerstones of the Chinese economy.
Overall, the latest economic data shows us that the Chinese economy is experiencing stable growth in the post-COVID-19 period. As long as the COVID-19 situation is well contained in China, this trend of economic growth will continue in the coming months.
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