CHINA’S economy is expected to further recover in the rest of 2022 as the government’s stimulative economic package is set to yield fruitful returns in the fourth quarter, an official with China’s top economic planner said yesterday.

“Statistics for October showed that China’s economy has withstood the impacts of multiple factors from home and abroad and maintained a steady recovery,” Meng Wei, spokesperson for the National Development and Reform Commission (NDRC), told a press conference.

Data released Tuesday by the National Bureau of Statistics showed that China’s value-added industrial output went up 5% year on year in October.

During the first 10 months, the country’s fixed-asset investment went up 5.8% year on year, with investment in infrastructure and manufacturing gaining 8.7% and 9.7%, respectively.

“The economic recovery and stabilization of key areas are speeding up, as a policy package for stabilizing the economy and follow-up measures are gradually taking effect,” Meng added.

Last week, the government released a circular on further optimizing the COVID-19 response, announcing 20 prevention and control measures. The move aims to adapt to the new situation of COVID-19 prevention and control, and to minimize the impact of the epidemic on economic and social development.

“This will further smooth the economic cycle and promote the recovery of market demand, and the economic growth is expected to further accelerate in the whole year,” Meng said.

But recent COVID outbreaks in the country and the “complicated international environment” mean that “arduous efforts” will be needed to ensure economic growth stays on track in the fourth quarter, said Meng.

“Stabilizing growth will be put in an even more important position,” she said.

A total of 740 billion yuan (US$104 billion) raised through policy bank financing tools has all been invested and construction on most of the projects that received money has started, Meng said.

The tools played an “active role” in stabilizing investment by maintaining spending on infrastructure in the face of the plunge in real estate investment, she said.

The money was invested in projects such as a high-speed rail link between Beijing, Xiong’an in Hebei Province and Shangqiu in Henan Province, water conservation projects, solar, wind and nuclear power plants, and gas supply and drainage systems in urban areas, she said.

Going forward, the NDRC will push for the acceleration of construction on the projects to expand effective investment. It also aims to speed up the recovery of consumption in key areas, enhance support for small businesses, and ensure the supply of goods that are directly related to people’s livelihood such as pork or energy, she said.

(SD-Agencies)