Experts say China’s economy is poised for a steady recovery throughout this year, supported by a consumption-led recovery, solid foundations laid in the first quarter and gradual stabilization of the real estate sector.
Although the overall economy still faces pressure from weak domestic demand and heightened internal and external uncertainties, the country continues to enjoy favorable conditions and positive factors that further consolidate the recovery trend, they said. .
Gu Yan, first research director of the Xi Jinping Economic Thought Research Center, said that more Chinese people are willing and able to spend more, so the impact caused by the COVID-19 pandemic He said the “scarring effect” is gradually fading. .
Gu made the remarks at a conference on China’s economic situation held in Beijing on Monday. He said the consumption recovery will continue this year, given the implementation of the country’s pro-consumption policies and the strong resilience of the Chinese economy.
According to data from media group Caixin, the Caixin China Comprehensive Services Purchasing Managers Index stood at 52.5 in April compared to 52.7 in March, exceeding the 50-point mark that separates growth from contraction.
Caixin’s composite PMI, which includes both manufacturing and services, was 52.8 in April, up from 52.7 the previous month.
Wang Zhe, senior economist at Caixin Insight Group, said China’s economic performance in the first quarter exceeded market expectations due to steady growth in manufacturing and a gradual recovery in consumption, and Caixin PMI data showed a strong outlook for the year. He said it was consistent with the start.
Mao Kejun, director of the Third Research Department of the Xi Jinping Economic Thought Research Center, emphasized that industrial production was strong in the first quarter and expressed strong confidence in China’s long-term development.
“China’s economy still enjoys favorable conditions and positive factors, such as strong industrial production capacity and a complete industrial system,” Mao Zedong said.
So far, 31 provincial-level regions have announced their local GDP for the first quarter. In the first quarter, 16 regions outperformed the national year-on-year growth rate of 5.3%, with Jilin, Jiangsu, and Hubei provinces growing by 6.5%, 6.2%, and 6.1%, respectively.
Hubei Governor Wang Zhonglin said at a press conference in Beijing on Tuesday that Hubei will focus on promoting deep integration of technology and industrial innovation, further expanding opening-up, and promoting green transition to consolidate the recovery trend. He said he would make further efforts to achieve this goal.
He said efforts to build Wuhan, the capital of Hubei province, into a nationally influential center of science, technology and innovation have been accelerated, achieving breakthroughs in key advantageous industries such as opto-electronic information, and developing the province’s modern industrial cluster. He said further efforts are needed to strengthen and optimize the construction. and develop new high-quality production capabilities.
The recent meeting of the Politburo of the Communist Party of China Central Committee emphasized the importance of developing new high-quality production capacity according to local conditions, cultivating and strengthening emerging industries, and actively planning and building future industries. He called for efforts to leverage cutting-edge technology to empower. Transformation and upgrading of traditional industries.
Xiong Yuan, chief economist at Guosheng Securities, said China’s gross domestic product (GDP) growth rate in the second quarter is expected to be around 6%, and that the country should better implement existing support policies to improve the economy. He said further steps needed to be taken to continue the stimulus package.