China's Economic Recovery Gains Momentum with Strong Retail Sales and Industrial Growth
China's retail sales and industrial production in October exceeded expectations, with retail sales growing by 7.6% and industrial production rising by 4.6% year-on-year. However, investment in real estate declined by 9.3%, worsening the drag on the sector. The urban unemployment rate remained unchanged at 5%. The recovery in domestic tourism spending was observed, but the real estate market continues to face challenges. The International Monetary Fund (IMF) raised its growth forecast for China to 5.4% for 2023 and 4.6% for 2024, citing Beijing's policy support. Real estate and related sectors have accounted for about a quarter of China's GDP, but their share has declined to about 22% this year.