The COVID-19 economic crisis continues to hamstring China's economic recovery - leading to a weaker-than-expected uptick during the third quarter and poor growth for the first nine months of the year.
The National Bureau of Statistics said China's gross domestic product rose 4.9% on year from July to September. This was lower than the 5.2% forecast by analysts in a Reuters poll.
The bureau said third quarter gross domestic product on a quarter-on-quarter basis increased 2.7% compared with an 11.5% rise in the previous quarter and predictions for a 3.2% upswing.
China's gross domestic product grew 0.7% on year only from January to September - indicating a far weaker overall recovery. An impressive panoply of measures including fiscal spending, tax relief and cuts to lending rates and banks' reserve rate requirements had little effect on getting growth past the 1% mark for the first nine months.
NBS spokeswoman Liu Aihua warned China's growth remained uneven and worrisome.
"Internally, the economy is still in the process of recovery," she said. "Some or most of the indicators have not returned to the normal growth level, and some of the cumulative growth rate has also declined."
Echoing Aijua's sentiments was Yoshikiyo Shimamine, chief economist at Dai-ichi Life Research Institute in Tokyo. Shimamine said China's economy remained on the recovery path and was being driven by a rebound in exports.
He said consumer spending was headed in the right direction but China can't claim to have completely shaken off the drag caused by COVID-19.
"There is a risk that the return of lockdowns in Europe and another wave of infections in the United States will hurt consumer spending and trigger more job losses, which would be a negative for China's economy," he said.
There were, however, many signs China's nascent recovery is gaining strength. Data shows a robust improvement in consumer spending and a spike in manufacturing.
Retail sales rose 3.3% on year in September - the fastest since December 2019. It compares favorably with the 0.5% rise in August.
Industrial output jumped 6.9% after a 5.6% rise in August - another indicator that says manufacturing recovery keeps gaining momentum. Fixed-asset investment was up 0.8% on year from January to September - returning to year-to-date growth for the first time this year.
Property-sector investments rose 12% on year in September - the fastest rate in nearly one and a half years.
"The Chinese economy remains resilient with great potential," People's Bank of China Gov. Yi Gang said. "Continued recovery is anticipated, which will benefit the global recovery."
