China’s economic growth is facing challenges and problems in the fourth quarter as Covid-19 restrictions and jitters further put the brakes on travel and remittances, constraining consumption and trade in the world’s second-largest economy.
Mobility statistics — from metro passenger traffic in cities and flight cancellations to handling domestic containers at major ports — worsened in October despite the drop in local coronavirus cases, suggesting Covid-19 preventive measures or the fear of these measures are still stifling economic activity.
China on Monday reported a 3.9% expansion in its economy in the third quarter, but September data showed weakness in goods imports and retail sales, reflecting its still subdued domestic demand.
Even so, household consumption of goods and services was responsible for more than half of the growth in Gross Domestic Product in the third quarter, reinforcing its excessive weight in the economy.
The proportion of canceled flights for scheduled flights remained high, rising to 68.33% in the week of October 18-24 from 67.14% the week before, according to Reuters calculations based on data from air traffic consultancy Variflight.
Container handling at eight major ports was down 7.3% between October 1st and October 10th year-on-year, compared with a 4.4% increase in the last 10 days of September, in part due to worsening domestic trade. , showed data from the China Ports and Harbors Association.
An index measuring road freight turnover fell 26.2% on Oct. 21 from a year earlier, down from 23.7% the week before, according to Nomura.
As China wages war against Omicron this year, officials have stepped up PCR testing on local populations and increased visitor requirements, lessening the desire to travel. Inspections of goods from abroad and from other provinces also delayed deliveries for days and even weeks.
China seeks to promote private enterprise development with more loans
China’s cabinet on Tuesday unveiled rules to promote private companies, including incentives for financial institutions to lend to them, in its latest move to support an economy facing a number of obstacles.
The rules are aimed at protecting the legitimate rights and interests of private companies and expanding employment, the China office said in a notice posted on its website.
“Private entrepreneurs are important ‘players’ in the market, playing an important role in the growth of the economy and in increasing employment.”
The world’s second-largest economy is facing the economic impact of lingering restrictions against Covid-19, a prolonged slump in the housing sector and risks of a global recession with falling domestic demand and high unemployment.
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
