FXstreet.com (Barcelona) - According to the NAB Analyst Team, “Recent announcements by local Chinese government officials, along with numerous NDRC investment approvals, suggests that the previously championed policy goal of rebalancing growth more towards consumption may have been put on the back-burner.” Consistent with this, consumption’s share of economic growth in the year-to-date has declined over the past two quarters from 76 per cent to 55%.
However, with export demand and private investment subsiding fast, and retail sales remaining robust, consumption has still made the largest contribution to real GDP growth over the year to date (4.2 percentage points).
Moreover, “The partial economic indicators for September were also more upbeat, providing tentative signs that the economy may be stabilizing despite continued headwinds from Europe, capital flight risk and the governments continued clamp down on local real estate, although there was likely some seasonal effect in the form of front- loading of activity ahead of the National Day Golden Week holiday in early October.” they add.
However, with export demand and private investment subsiding fast, and retail sales remaining robust, consumption has still made the largest contribution to real GDP growth over the year to date (4.2 percentage points).
Moreover, “The partial economic indicators for September were also more upbeat, providing tentative signs that the economy may be stabilizing despite continued headwinds from Europe, capital flight risk and the governments continued clamp down on local real estate, although there was likely some seasonal effect in the form of front- loading of activity ahead of the National Day Golden Week holiday in early October.” they add.
