Lujiazui, a financial zone in Shanghai Photo: VCG

China's economy is expected to further recover in the remainder of the year as the government's stimulus package kicks in during the fourth quarter, a spokesperson of China's top economic planner said on Wednesday, while warning that "arduous efforts" would still be needed to bolster growth.

With the accelerated implementation of policies, more pro-growth measures, special re-lending facilities for equipment renewal and renovation, and expansion of medium- and long-term loans for manufacturing industry kicking in in the fourth quarter, growth momentum and investment confidence will continue to increase, Meng Wei, of the National Development and Reform Commission (NDRC), told a press conference on Wednesday.

Major provinces and regions are now showing clear signs of recovery and stabilization following the implementation of those stimulus packages, Meng said.

During the final two months, economic growth is expected to further accelerate, Meng said, while warning the complex international situation and the ongoing epidemic might impact growth.

"Particularly, domestic COVID outbreaks continue to emerge, so it will take arduous efforts to promote a sustained economic recovery in the fourth quarter," Meng said.

Last week, the Chinese government released a circular on optimizing COVID response, announcing 20 prevention and control measures. The move aims to minimize the impact of the epidemic on economic and social development. "It will further smooth the economic cycle and promote the recovery of market demand," the official said.

Key economic statistics for October were released on Tuesday. Industrial output rose 5 percent from a year earlier, slowing from the 6.3-percent rise seen in September, as COVID-related restrictions weighed on factory activity.

Retail sales totaled 4.0271 trillion yuan ($572 billion), down 0.5 percent year-on-year. Vehicle sales totaled 369.5 billion yuan, up 3.9 percent year-on-year.

Commenting on the data, the National Bureau of Statistics (NBS) said on Tuesday that China's economy withstood the impact of many unexpected headwinds in October and continued to recover, though slowly.

Meng said that the NDRC will actively expand effective investment, promote the development of consumption in key regions, continue to promote the implementation of tax rebates and reduction of administrative fees, and increase support for small, medium-sized and micro-sized enterprises and individual businesses.

"We will seize the window of opportunity to stabilize the economy," Meng said.

China's economy performed relatively well in the third quarter this year. GDP of the world's second-largest economy grew by 3.9 percent year-on-year from July to September. On average, during the first three quarters, China's GDP grew by 3 percent year-on-year to 87 trillion yuan.

Global Times