China’s April economic data falls short amid low demand, high youth unemployment

Photo Courtesy Flickr

Official figures have revealed that China’s economic data for April failed to meet expectations, with low demand and high youth unemployment contributing to an uneven recovery after the easing of strict Covid-19 regulations.

According to the National Bureau of Statistics (NBS), retail sales, a crucial gauge of domestic consumer activity, grew by 18.4% year-on-year. However, this fell short of the 21.9% predicted by a Bloomberg survey of economists reports Channel News Asia.

Advertisements

Despite low inflation, weak domestic demand has hindered China’s economic recovery. The government has set a growth target of around 5% for this year, the lowest in decades, with Premier Li Qiang acknowledging that achieving this goal will be challenging. Zhang Zhiwei, chief economist at Pinpoint Asset Management, said…

“The growth target for this year is set at a low level, which leaves room for the government to wait and see.”

In April, unemployment among urban 16 to 24 year olds in China reached an all-time high of 20%, as the services sector struggled to accommodate the influx of rural migrants into cities. Overall urban unemployment decreased to 5.2% in April, down from 5.3% in March.

Industrial production for April increased by 5.6%, just over half of the anticipated 10.9% growth, as factories gradually resumed full capacity following the lifting of lockdown restrictions. Fixed asset investments from January to April rose by 4.7%, falling short of the 5.7% forecast, as debt-ridden local governments were compelled to reduce spending on large infrastructure projects.

China’s central bank recently stated that the world’s second-largest economy is not at risk of deflation, after data indicated that consumer prices increased by a mere 0.1% year-on-year in April, the slowest rate since 2021.

Advertisements

The report reviewing monetary policy implementation in the first quarter asserted…

Consumer prices are still rising moderately and economic operations continue to improve, which does not conform to the characteristics of deflation. In the medium and long term, there is also no basis for deflation.”

Business NewsWorld News

Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

Related Articles