DESPITE a sluggish global economy, China has navigated the various economic headwinds with an effective policy mix and put the economy on a solid footing to achieve its full-year growth targets.

Data from the National Bureau of Statistics (NBS) showed Wednesday that retail sales of consumer goods, a major indicator of consumption strength, grew 7.6% year on year in October, marking its fastest pace since May and quickening from a rise of 5.5% registered in September.

Industrial production also beat market expectations, rising 4.6% year on year in October, accelerating from the 4.5% growth pace seen in September. This also marked the strongest growth since April.

Employment remained generally stable, with the surveyed urban unemployment rate at 5% in October, unchanged from that in September, according to the NBS.

Judging from major economic indicators, NBS spokesperson Liu Aihua said the country’s economy has maintained a sustained momentum of recovery in October, and laid a solid foundation for the country to achieve the full-year growth targets.

The world’s second-largest economy expanded 4.9% year on year in the third quarter. China set its GDP growth target at around 5% for 2023.

Wednesday’s data showed the country’s economic structure continued to improve, which macroeconomist Pan Jiancheng said is vital for sustainable development in the longer term.

Consumption is playing an increasingly important role in driving growth, with consumer spending contributing 83.2% to economic growth in the first three quarters, according to the NBS data.

The country’s consumption will continue to recover thanks to the continued growth in disposable incomes and a slightly lower saving rate, a recent Goldman Sachs report said.

High-tech manufacturing maintained robust growth, with the value-added industrial output of the drone manufacturing sector surging 53.2% year on year in October, while new energy vehicle production expanded 27.9% from one year earlier.

The Chinese economy will continue to recover under effective macro-economic policies, but the recovery will be a wave-like development with twists and turns, Liu said.

“At present, the external pressure remains great, the constraints from insufficient domestic demand are still prominent, enterprises face many difficulties in production and operation, and hidden risks in certain areas require much attention,” Liu said. (Xinhua)