Economy Is Set for Steady Rebound in Q2

A report from chinadaily.com.cn on June 24th, 2024:

China’s economy is set to rebound steadily in the second quarter given steady demand recovery, resilient exports and a low comparison base in the previous year, analysts said.

Their comments came after data from the National Bureau of Statistics showed on Monday that China’s economy is showing signs of stabilization in May with improvement in some key indicators and new growth drivers gaining momentum.

Liu Aihua, an NBS spokeswoman, said May’s steady economic rebound was led by strong policy stimulus, improvement in external demand and the positive impact of the May Day holiday on consumption.

NBS data showed China’s retail sales, a key measurement of consumer spending, rose 3.7 percent year-on-year in May versus the 2.3 percent rise in April.

China’s value-added industrial output grew by 5.6 percent in May, while fixed-asset investment increased by 4 percent in the January-May period.

“Looking ahead, China’s economy will likely continue the recovery trend with China’s innovations gaining further momentum, ongoing industrial upgrading, gradual recovery in domestic demand and strong policy stimulus,” Liu told a news conference held in Beijing on Monday.

Zhou Maohua, a researcher at China Everbright Bank, said the latest data suggest that the recovery in domestic consumption and demand is steadily gathering steam, pointing to a more balanced recovery in the world’s second-largest economy.

“Given the steady demand recovery, the resilient exports and the low base effect, China’s economic growth will likely accelerate in the second quarter, laying a solid base for achieving an annual growth target of around 5 percent this year,” he said.