According the latest release by the Chinese National Bureau of Statistics (国家统计局), the Chinese economy has grown by 7.8% in quarter 3. Due to the US government shutdown? In spite of it?
Regardless of what one things of China and its economy, there are a number of major elements underpinning its ongoing growth, maturity and strength. Domestic and international markets are growing for China, and there appears to be a growing of rural incomes as well as urban incomes. The Chinese National Bureau of Statistics believes that the strong growth in its economy, and the general makeup for Q3’s growth of 7.8% (vs. 7.7% for Q1, 7.5% for Q2 year on year) is due to the following 8 main reasons:
1. Agricultural Production Showed Good Momentum
2. The Growth of Industrial Production Grew Steadily
3. Investment in Fixed Assets Enjoyed Relatively Fast Growth while Growth Rate of Investment in Real Estate Declined Slightly
4. Market Sales Kept Steady Growth with the Growth Rate in Rural Areas Faster than that in Urban Areas
5. The Growth Rates of Exports Declined while that of Imports Accelerated Slightly
6. The Growth of Consumer Price was Generally Stable while the Decline of Producer Price Narrowed Down
7. Urban and Rural Residents’ Income Continued to Rise with a Higher Growth for Rural Residents
8. Money Supply Enjoyed Relatively High Growth with More Newly Increased Loans Year-on-year
(please see the full report here)
The Chinese domestic housing market continues to have staggering growth in new homes (up 19.3% in some cities) and more cooled growth in second-hand homes (up 1.6% in some cities). Data collected by the bureau across 500 cities also shows that domestic consumer prices grew in September by circa 3.1%, of which particular interest to Australian exporters is the strong growth in Beef and other food prices and (more to the point) the ability of the Chinese consumer to pay for it.