Reuters said, China has come out of the strict restrictions of the epidemic. As a result, the country’s economy began to turn around in the first quarter of this year. The ongoing global crisis was making the world economy optimistic. But he started to lose momentum at the start of the second quarter. Indicators of commercial production and retail sales in the country remained below expectations, putting additional pressure on policymakers.
According to the National Bureau of Statistics (NBS), commercial production rose 5.6 percent year-on-year in April. Production rose 3.9 percent in March. Although this was the fastest growth since September 2022, it did not meet analysts’ expectations. The April estimate was 10.9 percent. Retail sales increased by 18.4 percent. Whereas in March its rate was 10.6 percent. This is the fastest growth since March 2021. However, the analysts estimate was 21 percent.
The economy was at a standstill in April last year due to the lockdown of China’s major cities, including Shanghai, which has hit the Asian economy hard. According to Bruce Pang, chief economist at Jones Lang LaSalle, lower-than-expected output data suggest the economic recovery will be difficult to sustain. On the one hand, the commercial risk is seen to increase, on the other hand, the activities are slowing down. Unemployment is increasing and demand is decreasing. There are problems like inflation. The annual economic indicators in the second quarter were bright but did not meet expectations.
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