China’s economic growth accelerates in October

Fuelled by the November 2008 $586-billion stimulus package to boost its economy and stimulate growth, as the global economic slunp began to weigh on its exports (See: China pumps $586 billion to bolster economy), China's economic recovery accelerated in October as retail sales and industrial production grew at a faster pace while GDP grew 8.9 per cent from a year ago in the third quarter. 

Retail sales in October for the world's third-largest economy rose 16.2 per cent year on year to 1.17 trillion yuan ($171 billion), the National Bureau of Statistics (NBS) said today, while industrial output rose 16.1 per cent in October from a year earlier riding on massive government spending.

With aggressive new spending, China's economy has recovered faster than other major global economies from recession and the government believes it is well on its way to reach the 8 per cent GDP growth target this year set by it earlier.

Way back in April, the World Bank had projected the Chinese economy to enter the road to recovery around the middle of this year, but had forecasted a GDP growth of 6.5-per cent this year - down from the 13 per cent achieved in 2007 and 9 per cent in 2008. (See: Chinese revival may start this year: World Bank)

Although the country's imports and exports fell 10.7 per cent in October year on year, the monthly exports still exceeded $100 billion for a fourth straight month this year, the General Administration of Customs said today.

Retail sales for the first 10 months saw a 15.3-per cent growth to 10.14 trillion yuan year on year. The rate was 6.7 percentage points down from the same period last year, and 0.2 percentage points up from the first nine months this year.