China’s economy is showing signs of recovery from its slowest growth in three years.
In October spending on infrastructure accelerated while output from Chinese factories ran at its fastest in five months.
The Commerce Minister Chen Deming also revealed that exports last month had expanded by more than eleven percent year-on-year.
That was well above expectations.
Many analysts and investors now believe China’s rebound is gathering momentum thanks to recent pro-growth policies from the government.
“It’s pretty clear that there is no hard landing risk, that the economy will improve in the fourth quarter and we’re going to see nine percent year-on-year growth in the first half of next year,” Dariusz Kowalczyk, senior economist and strategist for non-Japan Asia, Credit Agricole CIB, told Reuters.
That is a bold call on growth after seven successive quarters of slowing activity dragged the annual rate of economic expansion down to 7.4 percent in Q3 – its lowest since early 2009.
The world’s second biggest economy is currently on track to mark its most sluggish year since 1999.
Commerce Minister Chen, speaking on the sidelines of the Chinese Communist Party’s congress meeting, signaled though that the recovery was not as robust as some might think.
“China’s exports in September grew 9.9 percent and rose a bit more than 11 percent in October, but this only suggests a mild recovery and I think it is very difficult to achieve the annual target of 10 percent (growth in trade) for this year,” Chen told reporters.
Exports were worth about 31 percent of China’s GDP in 2011, according to World Bank data, and the external sector supports an estimated 200 million jobs.