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Third quarter economic developments indicate positive momentum

Updated: Oct 24,2016 2:11 PM

China’s economy is experiencing positive momentum as third quarter economic indicators show the world’s second-largest economy’s steady growth, giving the nation confidence to deal with challenges and push forward economic transformation.

Economic spotlights

Economic indicators regarding enterprise profits, industrial production, investment growth, corporate loans, and market confidence also show positive trends.

For example, the national producer price index (PPI) saw a 0.1 percent year-on-year growth in September. Despite the slight growth, the change means a 54-month negative growth has ended.

“This shows a substantial change of supply and demand in industrial sectors,” said Sheng Laiyun, a spokesman for the National Bureau of Statistics.

In addition, 10.67 million jobs were created in the past nine months, and the unemployment rate in 31 major cities in September is below 5 percent, the lowest in three years.

Transition and upgrades under New Normal

Amid international and domestic economic complexity, China is making efforts to transform its economic structure.

So far, a series of policies have been implemented to keep the economy growing at a steady pace and create new driving forces for the economy.

The positive change in the third quarter shows that economic transformation saw achievements under the New Normal, according to Zhang Liqun, an analyst from the Development Research Center of the State Council.

Policies such as Mass Entrepreneurship and Innovation have created new driving forces as 14,600 new companies were registered every day in that previous three quarters, and strategic emerging industries and high-tech industries maintained a growth rate of higher than 10 percent in the same period.

Supply-side structural reform also saw progress as overcapacity in steel, coal and real estate were greatly reduced.

Facing challenges with confidence

The positive changes in the nation’s economy have injected confidence into the market, but challenges remain, considering the downward economic pressure.

To cope with the challenges, the first thing to do is the solid implementation of macro policies aimed at lowering costs for enterprises and invigorating the market.

Innovation is another focus, and efforts should be made to strengthen the integration of science and technology with the economy.

Last but not least, economic achievements will be shared by the people to further promote the development of the whole society.