China's Economic Growth Remains on a Positive Trajectory

On October 24, 2022, a day after President Xi Jinping met the media, stating that the Chinese economy has great resilience, potential and latitude, China's National Bureau of Statistics (NBS) announced that the GDP growth in the third quarter of 2022 had increased by 3.9% quarter-on-quarter. Xi's words were echoed in NBS statistics that showed a return to continued stable recovery with key economic indicators staying within a reasonable range. The figures highlight the success of Beijing's economic support measures and give policymakers confidence that economic recovery is going on in the right direction. This also supports Xi's assessment that the strong fundamentals of the Chinese economy will not change and that China will "remain on a positive trajectory over the long run."

On the right path

CPC's leadership in the face of complex challenges and unforeseen circumstances has helped to fend off headwinds and maintain stable economic recovery. Despite facing numerous hurdles both at home and abroad, the economy has continued its positive trajectory with the first three quarters' GDP growing by 3% year-on-year to hit a total of 87 trillion yuan (around $12 trillion): the first quarter, 4.8% year-on-year growth; the second quarter, 0.4% year-on-year growth; and the third quarter, 3.9% year-on-year growth. At the macro level, all three of the economy's main drivers—consumption, investment, and exports—continued to see a strong sustained recovery. The figures also showed that China's employment rate remained relatively stable over the first three quarters. China's headline measure of joblessness, the urban surveyed unemployment rate, dipped to 5.4% in the third quarter, a drop of 0.4 percentage points on the second quarter. Inflation also remained stable with the Consumer Price Index rising 2% year-on-year. NBS statistics further demonstrated that Beijing's raft of economic stimulus measures had been effective in increasing production, especially in new growth drivers across high-tech and low-emission fields. Overall, third-quarter data indicated that the economy has overcome numerous obstacles and unforeseen circumstances and continues to maintain sustained economic recovery.

A recipe for success

While the pandemic and disruptions across supply and value chains have led to slower economic growth than in previous years, China's current overall economic situation is good, and its future prospects are strong. By global standards, China's economy continues to produce excellent results and offer new opportunities. This success and potential for growth is a product of historical, political and economic factors fundamental to the future prosperity of the Chinese economy. These factors include the strong leadership of the CPC, the advantages inherent in China's socialist system, the solid foundations of continued economic growth, long-term social stability, and the intrinsic confidence in China's path forward. As China pivots to high-quality development, these fundamentals will not be upended by short-term fluctuations or complexities from changing environments. China's economy will, regardless of any risks or challenges that it faces, continue to remain on a positive trajectory over the long run.