China’s economy expected to gradually recover from Omicron’s impacts – Xinhua

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Aerial photo taken on May 6, 2022 shows a view of the Longtan Container Terminal of Nanjing Port in Nanjing, Jiangsu Province. (Xinhua/Li Bo)

BEIJING, May 16 (Xinhua) — China’s economy is expected to gradually recover as the country achieves major anti-epidemic results and pro-growth policies take effect, Fu Linghui, spokesperson for the Chinese government, said Monday. National Bureau of Statistics (BNS).

The country’s economy was hit by the nationwide resurgence of COVID-19 cases in April, but the impacts are “short-lived and external”, Fu said.

“The fundamentals of China’s economy remain unchanged. The overall trends of economic transformation and upgrading and high-quality development remain unchanged,” he said.

“There are many favorable conditions to stabilize the economy and achieve the expected development goals,” the spokesperson said.

With a very large market, complete industrial and supply chains, and huge domestic demand, the world’s second-largest economy has the resilience to weather all kinds of challenges.

Fu said that despite the impacts of the epidemic, grain and energy production maintained growth in the first four months, laying a solid foundation to fight the epidemic and promote economic recovery. In April, production of raw coal, crude oil and natural gas rose 10.7%, 4% and 4.7% year-on-year, respectively.

The market supply of food and basic necessities was sufficient, with prices remaining stable. The consumer price index, the main indicator of inflation, rose only 2.1% year-on-year last month.

High-tech industries showed outstanding performance, with production of new energy vehicles and solar cells jumping 42.2 percent and 20.8 percent year-on-year in April.

China’s economy is expected to improve in May as the resumption of work and production in Shanghai and Jilin pick up speed and growth-enhancing measures are put in place.

Although some indicators recorded contractions in April, that does not mean the economy will slow down in the second quarter, Fu said, pointing to the role of investment and consumption in reviving the economy.

Manufacturing investment jumped 12.2% year on year in the first four months, while infrastructure investment maintained 6.5% year on year growth.

“It shows that the investment will provide strong support for economic growth,” he said.

Retail sales of consumer goods, a significant indicator of China’s consumer strength, fell 0.2 percent year on year to 13.81 trillion yuan (about $2 trillion) in the January- April, according to BES data.

“With the epidemic under control and people’s production and lives returning to normal, pent-up consumption will be gradually released,” Fu said.

China’s exports jumped 10.3 percent year on year to nearly 6.97 trillion yuan in the first four months.

Despite a complex and serious international situation, Fu listed favorable conditions that facilitate China’s continued export growth this year, including the country’s comprehensive industrial system, strong manufacturing supply capacity, increased openness, mutually beneficial cooperation with trading partners and the development of free trade. areas, among others.

Looking ahead, China will strengthen its macroeconomic policy adjustment and mitigate the impacts of the epidemic to ensure the economy operates within an appropriate range, Fu said.

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