China's economy accelerates recovery

In October, China's economic recovery accelerated. China becomes the only major economy in the world to grow this year, writes Bloomberg.

According to the National Bureau of Statistics, industrial production increased by 6.9% in October compared to the same period in 2019. Experts polled by Bloomberg expected growth of 6.7%. Retail sales grew by 4.3% against 3.3% in September. The unemployment rate dropped to 5.3%.

The reason for the success is due to the aggressive containment of the coronavirus pandemic at an early stage, while the US and Europe gradually introduce restrictions in an attempt to bring a new outbreak of coronavirus infection under control. In China, a positive trend is expected through the end of the year on the back of rising consumer spending, as well as global demand for medical equipment and technologies for teleworking.

The financial system is also receiving support from the state through a massive infusion of liquidity, the newspaper notes. So, on November 16, the Bank of China sent an additional $121 billion to the banking system.

China is the largest consumer of oil, so the recovery of the country's economy may have an impact on investor sentiment and fluctuations in oil prices. According to the London Stock Exchange ICE on November 16, the price of a barrel of Brent brand reached $43.41 (+1.47%). A barrel of WTI rose in value to $40.83 (+1.72%).