China issues latest economic data
China issued a slew of economic data yesterday which they say is showing that the economy is stabilising. The economic data included:
• Growth slowed to 7.4% in the third quarter leading to the government lowering growth targest to 7.5% for 2012. This is the seventh quarter the country has experienced a drop in growth
• Retail sales grew by 14.1% year on year in the first nine months of this year
• Industrial output was up 10% in the first nine months with state owned industrial enterprises registering 6.3% growth and overseas funded companies posting 5.3% growth
• FDI fell 6.8% to $8.43 billion in September. The full press release on FDI as posted on the government website is as follows:
“Despite the inflow of foreign direct investment (FDI) dropping for the fourth consecutive month in September, the general trend is still positive, according to China’s Ministry of Commerce.
Foreign investment dropped 6.8 percent year-on-year to 8.43 billion U.S. dollars in September, ministry spokesman Shen Danyang said at a monthly press conference on Friday.
The figure brought the total FDI inflow for the first nine months of the year to 83.42 billion U.S. dollars, down 3.8 percent year-on-year, Shen said.
“Although the FDI inflow saw slight declines, there has not been any substantial declines,” he said.
Investment from developed economies including the European Union (EU), the U.S. and Japan saw both rises and drops, but the drops narrowed in general, Shen said.
In the first nine months, investment from the U.S. dropped 0.63 percent year-on-year to 2.37 billion U.S. dollars, down from a 2.9-percent drop in the January-August period.
Investment from the EU dropped 6.3 percent year-on-year to 4.83 billion U.S. dollars. Investment from Japan surged 17 percent from a year earlier to 5.62 billion U.S. dollars, he said.
Shen said that the general trend of foreign investment flowing in China was positive and healthy. “The structure, quality and level of FDI have shown some heartening signs.”
FDI into the service industry, excluding the real estate sector, rose 1.6 percent year-on-year in the first three quarters, he said.
Foreign investment in the real estate sector dropped 5.62 percent year-on-year amid the country’s efforts to rein in runaway property prices.
China’s central regions saw FDI inflow climbing 16.5 percent year-on-year in the first nine months, while investment in the western and eastern regions dropped by 1.8 percent and 5.6 percent, respectively.
“Based on our talks with large foreign enterprises investing in China, they still have full confidence in the country’s long-term development,” Shen said.
The country approved the establishment of 18,025 new foreign-funded companies in the first nine months, down 11.7 percent from a year ago, Shen said.