Posted on 22 Oct 2021
China’s economy will continue with its recovery and the progress towards high-quality development, and the country will be capable to achieve its economic and social development targets for 2021, Fu Linghui, spokesperson of the country’s National Bureau of Statistics (NBS), shared with confidence at the bureau’s press conference on October 18.
Over January-September, the country’s prices of coal-related products soared over 30% on year and steel- and metal-related product prices gained over 20% on year mainly on supply tightness, and the challenge may persist in the near term and China’s Producer Price Index (PPI), as a result, may perch high, according to Fu.
“In the medium and long term, though, China’s PPI may subside gradually with improvement in energy supply and shipment globally,” he added.
China’s power generation already showed signs of pick-up in growth in September, and its impact on the national economy, thus, is manageable, even though global energy prices including coal, natural gas and crude oil have been surging, and China’s supply tightness in power and coal has also lead to power rationing recently in some parts the country, but “all these tend to be temporary”, Fu commented.
Despite the market concern on China’s property market and the slow-down in recent months, it will maintain a steady development, and its impact on national economic growth will be limited, as suggested by the actual situation over January-September, as the growth in the added value from the property market slowed down 1.3 percentage points from H1, or averaging 4.8% on year for the past two years.
China’s gross domestic product (GDP), however, still grew 9.8% on year over January-September, as the country’s consumption contributed to 64.8% of China’s GDP growth, up 3.1 percentage points from H1, investment contributed to 15.6% of the GDP growth, and net exports of goods and services contributed to 19.5%, according to Fu.
Source:Mysteel Global
