NBS: China’s economy to continue recovering in H2
“The steady economic recovery in the first half has provided a solid footing for the continuing improvement in the second half,” she said, adding, “the experience in H1 has illustrated that the impact of the pandemic can be controlled and our economy has a strong ability of self-adjustment.”
“China has a rather complete and comprehensive industrial structure, ever-improving infrastructures, a giant market, all of which will be efficiently countering the blow from the pandemic,” she elaborated, noting that many new industries and new business models will be lending powerful support to the economic recovery.
China’s gross domestic product (GDP) grew 3.2% on year over April-June, which managed to narrow the on-year decline to 1.6% for H1 from the 6.8% in the first quarter, as reported.
She warned, though, that despite all the supportive factors in China’s economy, “the fast spread of the virus overseas, and the stalling global economy will curtail the recovery in China’s domestic demand, and it remains rather challenging to stabilize the enterprises and employment market.”
When asked whether China will readjust its fiscal and monetary policies in the second half, Liu commented that it will depend on the actual economic performance and they will only be adjusted moderately on the conditions of stability in key sectors.
As for the property market, despite a 1.9% on-year gain in the investment in H1, many key indicators still declined on year, so further monitoring will be needed, according to her.
Despite all the hardships in the Chinese economy, China is confident to realize the target of becoming a well-off society by the end of this year, as 2020 is just the final year of the 13th five-year planning period, and all quantifiable targets will be fulfilled fully or exceeded by the end of this year, she said, disclosing that GDP, and doubling of the income for the city and township citizens, for example, are close to the goals.
To stimulate the economy, Beijing will issue Yuan 3.75 trillion ($535.7 billion) bonds for specific use in 2020, Yuan 1.6 trillion higher on year, with the majority to be injected into the infrastructure and public service sectors, and China’s central government has also set aside Yuan 1 trillion specifically to aid the affected sectors, enterprises and individuals from the pandemic, Mysteel Global notes.
Written by Olivia Zhang, zhangwd@mysteel.com, and Hongmei Li, li.hongmei@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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