2023-11-07 07:36:22
Chinese exports are suffering from “the slowdown in economic dynamics in the United States and Europe,” commented Zhang Zhiwei, economist at Pinpoint Asset Management, adding that external demand would likely remain weak in the months to come.
In August 2023: China’s economy is slowing down
Imports are increasing
Imports, on the other hand, increased by 3%, against a forecast decline of 5%, thus recording their first month of year-on-year growth since the end of last year.
However, Zhang Zhiwei noted that October’s “positive surprise” in imports was not enough to determine whether domestic demand is improving, stressing that other indicators, such as retail sales, are needed. “Nevertheless, as tax policy has become more proactive, a recovery in domestic demand is likely in the coming months,” he said.
The growth target is 5% for this year
China reported moderate economic growth in the third quarter, as Beijing seeks to meet its official goal of an expansion of “around 5%” in 2023, one of its lowest targets in years.
Chinese growth increased by only 0.8% between the first and second quarters of this year and youth unemployment reached a record level of more than 20% in June, according to official figures whose publication has since been suspended. .
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Recovery measures
Beijing said last month it would issue sovereign bonds worth 1 trillion yuan (128 billion euros) to boost infrastructure spending. The government has also rolled out targeted stimulus measures for various sectors, particularly the struggling real estate market.
China entered deflation in July for the first time since 2021, but rebounded modestly in August.
Also in August: In China, “economic fluctuations” or “deflation”?
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