CHINA’S economy generally recovered and stabilised in the third quarter and the country will push ahead with its economic programme in the fourth, state media quoted Premier Li Keqiang as saying on Wednesday (Sep 28).

Li’s remarks come as policymakers gear up to bolster the economy hobbled by strict Covid curbs and a property crisis.

“Responding to the prominent contradiction of weak demand, we should try to expand investment to promote consumption, mobilise the enthusiasm of market players and social capital, continue to implement a package of policies and follow up policies to stabilise the economy,” Li was quoted as saying.

The government has rolled out more than 50 policy measures since late May to support the economy, which narrowly escaped a contraction in the June quarter, but the recovery remains shallow due to the strict Covid curbs and a property slump.

China’s economy showed surprising resilience in August, with faster-than-expected growth in factory output and retail sales shoring up a fragile recovery, but a deepening property slump weighed on the outlook.

With few signs China will significantly ease its zero-Covid policy soon, many analysts expect the economy to grow by just 3 per cent this year, which would be the slowest since 1976, excluding the 2.2 per cent expansion during the initial Covid hit in 2020.

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The World Bank has slashed its forecast on China’s 2022 growth to 2.8 per cent. REUTERS