Monday, October 19, 2020

China's economy continues to recover while other countries are still struggling!

 China's economy continues to show recovery from the decline caused by the coronavirus pandemic in the third quarter, according to data published by the National Bureau of Statistics (NBS) today.

However, the reading was disappointing for the market with a growth of 4.9% in the third quarter of 2020, up from 3.2% recorded in the previous three months and projected 5.2%.

This brings growth to the first three quarters of this year to 0.7% from last year.

According to a statement issued by NBS, the overall economic recovery of the country is seen to remain stable. However, there are concerns from foreign countries that are still struggling with the second wave and China is under great pressure to prevent the spread of the epidemic from outside.

Following data that missed out on expectations, it only caused small changes in the market with the Aussie dollar trading slightly lower after recording an increase during the opening of the Asian session trading.

The kiwi dollar continued to trade positively, supported by Jacinda Ardern's victory in the weekend election, allowing her to continue as Prime Minister of New Zealand for a second term.

In addition, the market was also shown with the release of retail sales data which increased significantly by 3.3% in September.

While industrial production increased 6.9% in September from last year, bringing the overall growth for the first nine months of this year to 1.2%.