The Chinese government published its quarterly economic performance report for the third quarter on 18th October 2021. From the report, the country’s GDP grew by 4.9%. This growth, however, did not meet the actual targeted growth rate predicted by analysts, who set the growth rate at 5.2% for the year.
These are some of the fundamentals of an economy an investor should know of before investing in it. Then, find a financial advisory firm in China to help advise you as an investor on investing in China.
Several factors can explain the drop in the economy’s growth rate. One of these is the issue of energy restrictions which has resulted in power cuts, affecting production at the end of the day. Secondly, it results from the bureaucracies along the supply chain and increased risk locally and across the borders.
The Impact of Global Challenges on China’s GDP
According to the official data, in the first quarter of the year 2021, China’s GDP grew by 18.3%. This points to the fact that the growth of 4.9% recorded in the third quarter is but a deceleration when we compare the reports’ two periods. However, looking at the year-to-date GDP growth, the growth rate stood at 9.8% over the months. The past quarter saw the economy record a 0.2% growth. Though positive, it fell short of the forecasted growth for the period, which was set at 0.5%. This state of economic performance is interpreted as the effect of the external challenges besetting the economy, particularly over the just-ended quarter.
There were many challenges that the economy faced over the last year, and these explain the slowdown in growth in the economy. However, over the year 2021, the economy took a recovery trajectory, even though slow and uneven. Policymakers are to take further measures to help stabilize the economy and ensure that it is firmly on the path to recovery post the COVID years. Some of the steps that policymakers will take over the next few months include but are not limited to; the fast-tracking of infrastructural projects, easing of access to credit and relaxing real estate policies.
Imports and Exports
Despite the pandemic ravaging and affecting economies all over, China’s export and import trade remained strong. Reports show that the past three decades have seen an increase in the total value of imports and exports by 22.7%. Imports increased by 22.6%, and imports grew by 22.6%.
Employment Statistics
By and large, there was a slight decrease in the unemployment rate in China in the year 2020. The first three quarters saw an additional 10.45 million people enter the list of those employed. The urban unemployment rate stood at 4.9%, which is a drop of 0.2% compared to the previous year.
Despite the slowdown in China’s economic growth, we see a resilient economy that is still promising and worth investing. Talk to the best financial advisory firm in China for proper financial advisory and secure your investment in this country.
click here for more articles