The resilience, potential of China’s economy amid headwinds
China‘s economy secured positive growth against all the odds in the second quarter and expanded 2.5 percent year on year in the first half of 2022, showing resilience and potential amid headwinds.
Due to the increasingly complex, grave situation abroad and Omicron flare-ups at home, major economic indicators fell sharply in April, a rare scene for the world’s second-largest economy.
The downward tendency, however, has been quickly checked following a slew of pro-growth measures and effective control of COVID-19 resurgences.
The data released on Friday shows an economy that has increasingly regained its footing.
The value-added industrial output reversed its downturn in May and accelerated its growth in June. The purchasing managers’ index for the manufacturing sector has been back to the expansion zone, indicating the growing confidence of manufacturing enterprises.
Consumption has improved as retail sales of consumer goods rallied 3.1 percent year on year in June, following year-on-year drops in April and May. The recovery is expected to continue as China is on a trajectory of consumption expansion, upgrades, and innovations.
Foreign trade has braved an unfavorable international trading environment, overcome the epidemic’s impact on industrial and supply chains, and registered a relatively fast growth since the start of the year. Foreign trade of goods, in particular, jumped 9.4 percent year on year from January to June.
More importantly, industrial upgrades are gaining traction, nurturing new growth drivers for the economy. In the first six months, the value-added output of large high-tech manufacturing enterprises grew 9.6 percent year on year, while investment in the high-tech industry soared 20.2 percent.
Meanwhile, consumer prices grew moderately. Employment has also improved, with the surveyed urban unemployment rate at 5.5 percent in June, down from 5.9 percent in May.
Headwinds are obvious for China. The risk of global economic stagflation is rising. The COVID-19 epidemic lingers. And shrinking demand is combined with supply shocks at home.
But an equally obvious fact is that the fundamentals of the Chinese economy remain unchanged, including its enormous potential, strong resilience, and vast room for maneuver.
China will seize the sound momentum, stay confident, and forge ahead to achieve a steady recovery of the economy.