CHINA’S economy took a hit from the resurgence of COVID-19 cases in April, but is expected to recover gradually as the country achieves major anti-epidemic outcomes and pro-growth policies take effect.

Official data showed that in spite of some indicators contracting in April, the country’s economy is on track to recover. Meanwhile, indicators measuring factory activities and investment posted year-on-year growth.

Manufacturing investment jumped 12.2% year on year during the first four months, while infrastructure investment maintained growth of 6.5% year on year. “This shows that investment will provide important support to the economic growth,” said Fu Linghui, spokesperson for the National Bureau of Statistics, adding that there are many favorable conditions for stabilizing the economy and achieving the expected development goals.

“The fundamentals of the Chinese economy remain unchanged. The overall trends of economic transformation and upgrading and high-quality development remain unchanged,” Fu said.

In particular, China’s inflation has remained at an overall moderate level against the backdrop of soaring global inflation. In April, the IMF projected in its World Economic Outlook that global inflation will reach 5.7% in 2022 in advanced economies and 8.7% in emerging markets and developing economies, 1.8 and 2.8 percentage points higher than the January projection.

Also in the report, the organization slashed global growth forecasts to 3.6% in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than it had projected in January.

“In long and medium term I’m quite bullish on China’s economy,” said WEF President Borge Brende, noting that China’s stable economic growth is of great significance to global recovery.

Bolstering intl. cooperation

From the global economy’s perspective, China’s growth has implications for global trade and for growth in other parts of the world.

On multiple occasions from the Boao Forum for Asia Annual Conference in April to the conference marking 70th anniversary of China’s trade promotion body and the Global Trade and Investment Promotion Summit in May, China’s top leadership has reiterated the country’s resolve to not only carry forward with its own opening-up but push for an open world economy.

So far, the country has become the largest trading partner of more than 120 countries and regions. In the first four months, China’s total foreign trade expanded 7.9% year on year, with exports and imports rising 10.3% and 5%, respectively, data from the General Administration of Customs showed.

To further keep industrial and supply chains stable, the State Council detailed more measures to stabilize and upgrade foreign trade Thursday. Services for key foreign trade enterprises will be enhanced and measures will be put into place to ensure unimpeded logistics for foreign trade cargos, a guideline released by the State Council said.

With steady economic recovery, China’s imports from other markets are likely to grow faster thanks to the country’s supportive measures on foreign trade, which is expected to further boost global economic recovery and the stabilization of global supply chain, analysts said. (Xinhua)