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Commentary: China''s upbeat economic recovery offers much-needed hope, optimism

2020-10-20 12:16:00

China''s economic recovery posted an evident acceleration in Q3 among a flurry of key indicators that show an upward trend.

China's economic recovery posted an evident acceleration in the third quarter (Q3) among a flurry of key indicators that show an upward trend, underpinned by China's outbreak containment success, strengthening domestic demand and strong foreign trade.

With its gross domestic product (GDP) expanding 4.9 percent year on year in Q3, faster than the 3.2-percent growth in the second quarter, China's growth is clearly gathering steam, offering hope and optimism for the world's ailing economy mired in recurrent waves of COVID-19 infections and ensuing lockdowns.

While putting the outbreak under effective control has served as the precondition for a sustained economic recovery, China's new economic development pattern of "dual circulation" has also contributed to the country's swift return to growth.

A raft of effective stimulus measures have spurred domestic demand and investment, as well as supporting employment, including more fiscal spending, tax relief, and cuts in lending rates and banks' reserve requirements.

Those efforts cement the goal of keeping the domestic market as the mainstay while the domestic and foreign markets work to boost each other. They also galvanize China's rebalancing of the economy from an export- and investment-driven one toward more focus on consumption and supply-side structural reforms.

China's robust recovery has spillover effects, especially on its neighbors and trading partners, and will support the global economy's difficult climb out of the hellish pandemic, International Monetary Fund (IMF) Chief Economist Gita Gopinath said.

At the current growth rate, China is poised to contribute an additional 1.5 trillion U.S. dollars to global gross domestic product (GDP) next year, and Chinese consumers will drive close to 40 percent of that, said British economist Jim O'Neill, best known for coining the acronym BRICS, adding that consumer spending continues to account for a growing share of China's expansion.

That has been largely manifested in the country's Golden Week holiday at the start of October, which is widely observed as a bellwether of China's consumption and growth potential following its success in taming the pandemic and lifting most domestic travel restrictions.