Asia and Pacific

Chinese economy shows positive signs

Friday November 08, 2013 Dr Guang Yang

The third quarter has seen a 7.8% growth in China, which has helped the Chinese economy to remain in a stable position, compared to the year before.

 

Figure 1. China GDP growth 2012-13

 

 

The government’s rebalancing effort has seemed to be effective. The growth has been sustained with especially the growth in industrial production propelled by investment in fixed assets. A negative has been retail sales, mostly remaining at a lower level this year as compared to last year. Worth noting is the faster growth in less developed Central and West regions through targeted government interventions

 

 

Figure 2. Growth of industrial value added and retail sales

 

 

Table 1. Regional growth patterns

 

 

Despite the positive signs, many forecasts for Chinese economic growth in the next year remain sceptical. There is doubt if the government can maintain the investment in infrastructure. New Zealand will closely monitor Chinese economic growth over the next few years, seeing that they have become a significant trading partner for the country.

 

Figure 3. China’s economic growth 2012-2018 

 

 

 


[1] The growth rates in all the figures refer to the growth rates as compared to the same period last year.