Strong GDP shows better structure: expert

Economy’s ‘inherent momentum’ enhanced

China’s economy has continued its firm growth, with GDP expanding by 6.9 percent yearon-year in the first three quarters, and 6.8 percent in the third quarter, the ninth straight quarter in which China has seen economic expansion of at least 6.7 percent, adding to the evidence that the economy is on a steady footing.

In January-September, China’s value-added industrial output expanded 6.7 percent year-on-year, faster than the 6 percent increase a year ago.

Industrial companies with annual revenue of more than 20 million yuan ($3 million) reported profits of 5.58 trillion yuan in the first nine months, up 22.8 percent from a year earlier.

Zhang Liqun, a researcher with the State Council’s Development Research Center, said economic growth was better than expected and more optimized in structure in the first three quarters of the year, with indicators pointing to progress in employment and income distribution, as well as upgrading of consumer spending and the services sector.

“Both the industrial and services sectors are improving, while consumption has become a major engine for growth, suggesting the ‘inherent momentum’ of the economy has been enhanced,” Zhang said.

China created 10.97 million jobs in the first nine months, 300,000 more than in the same period last year. The registered unemployment rate in Chinese cities stood at 3.95 percent at the end of the third quarter, the lowest level since 2008.

China’s average per capita disposable income grew 7.5 percent year-on-year deducting inflation, 1.2 percentage points higher than that for the same period last year.

The services sector expanded 7.8 percent year-on-year in the first three quarters, outpacing increases of 3.7 percent in primary industry and 6.3 percent in secondary industry.

Driven by government efforts, the contribution of consumption to economic growth reached 64.5 percent in the first nine months, up 2.8 percentage points from a year ago.

The high-tech and equipment manufacturing sectors posted stellar growth in the first three quarters, with output up 13.4 percent and 11.6 percent, respectively.

Investment also poured into high-tech sectors. In the first nine months, high-tech manufacturing saw investment rise by 18.4 percent, up from 11.7 percent during the same period in 2016.

The IMF has raised its forecast for China for the fourth time this year, estimating that the economy will grow by 6.8 percent this year, and 6.5 percent next year.