JAKARTA (TheInsiderStories) - National bureau statistic reported today, Chinese economy expanding to 18.3 percent in in the first quarter (1Q) from a year earlier as the recovery from the COVID-19 decline. In the fourth quarter of last year, the world second largest economy grew 6.5 percent, the strongest growth since 1992.
“The spread of COVID-19 globally and the international landscape is complicated with high uncertainties and instabilities,” wrote the bureau on Friday (04/16).
The agency noted, the economy has largely recovered from the coronavirus induced paralysis, fueled by global vaccination progress, resilient exports and government stimulus. The bureau data also showed the retail sales rose 34.2 percent and industrial production up 14.1 percent.
International Monetary Fund (IMF), among emerging markets and developing economies, China is projected to grow at 8.4 percent in this year. Chinese economy had already returned to pre-pandemic GDP in 2020, many other countries are not expected to do so until 2023, said the Fund.
While, IHS Markit sees, the inflation risks are low in China. The consumer price inflation is projected at 1.5 percent in 2021. Since the recession in early 2020, supply has rebounded faster than demand.
Recently, Presiden Xi Jinping has launched a series of policy measures, including more fiscal spending, tax breaks, bank reserve requirements, and cut lending rates to revive the virus-hit economy and support jobs. Since then, Chinese economy continues to recover from decades of lowest growth seen in the first months of the year.
While, Premier Li Keqiang, announced an economic growth target over 6 percent in this year from 2020 still contracted 2.3 percent, emerged from the global downturn caused by the pandemic on surer footing than any other major economy. The targets, he adds, aimed to reached President Xi Jinping’ long-term goal to double the GDP by 2035.
“In setting this target, we have taken into account the recovery of economic activity,” said Li by adding that the goal would “help sustain healthy economic growth.”
In 2020, China spent hundreds of billions of dollars to stimulate the economic activity, including major infrastructure projects and cash handouts for its citizens. China, said Li, also set the budget deficit for the year at about 3.2 percent, slightly lower than last year. He also lowered the amount of money local governments will be able to issue in special bonds this year by about RMB100 billion (US$15.40 billion).
That money is primarily used to fund infrastructure projects, such as 5G networks, airports, railways, and charging stations, he adds. The premier also said that the country would no longer issue special treasury bonds this year after issued about $155 billion worth of such bonds in 2020 to fund medical equipment and technology used.
US$1: RMB6.49
Written by Editorial Staff, Email: theinsiderstories@gmail.com
