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SCIO briefing on China's economic performance in April 2020

0 Comment(s)Print E-mail China.org.cn, May 18, 2020
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China News Service:

Will the economic performance be stabilized in the current second quarter of this year despite continuation of the pandemic spreading in other countries, but with the prevention and control efforts expected to be normalized in China? Rebound in consumption and investment in April was modest, how would you forecast the economic trend in the ensuing phase? Thank you.

Liu Aihua:

Thank you for your questions. At present, the epidemic situation at home and abroad is relatively complex and grim, the future trend of the economy has concerned us a lot. Based on the data released over the past two months, I will explain my views on three points regarding the forthcoming economic performance.

First, we have shown we are capable of tiding over difficulties. The capability has come from our holistic industrial system developed over a long period, with a constantly-improving infrastructure and huge market. These advantages, which have not been seriously jeopardized or fundamentally changed, have played an essential role in supporting the economy. Over the past few months, when fighting against the pandemic, we have noted that all key industries critical to the national economy and people's livelihood have managed to maintain production which has ensured the rapid growth of medical supplies and the stable provision of daily necessities meeting the needs of 1.4 billion Chinese. More to the point, the trend of transformation and upgrading has been basically established. The major economic indices in April suggest that, despite the disruptions caused by the pandemic, industries that were emerging as new economic driving forces have kept on growing.  

Second, we are confident as we move forward. Our confidence develops from the coordinated prevention and control efforts as well as economic policies and measures that have proved effective. In March and April, the economy has shown signs of recovery, which itself shows the resilience of economic growth, giving us more confidence in hedging policies issued as macro-economic guidelines and expanding the resumption of normal work and production. From January to April, total planned investment in new projects have changed from negative to positive, rising 1.1% from a decline of 22% in the previous month, a turning point in terms of project reserves and capital support. Industrial electricity consumption achieved a positive rate in April. Based on the latest monitoring results in early May, growth in electricity consumption has continued to grow slightly. These indicators are evidence that there are conditions and a solid foundation for sustained economic recovery and improvement.

Third, we still face challenges. Because the pandemic has not been controlled effectively abroad, we remain uncertain of the impact of the epidemic on the global economy. Despite the strategic achievement made in preventing and controlling the virus at home, the momentum of recovery in the economic sector has yet to achieve a return to normalcy. Since the risks and challenges, such as the enormous employment pressure and the difficulties impeding the development of businesses and enterprises, remain huge, we should keep our bottom line thinking and enhance our awareness of risks. Therefore, we should promptly implement the existing macro-economic hedging policies, and on the other hand, make timely adjustments to our policies in response to changing situations and the demands of our enterprises, in order to help the economy return to normal. Thank you. 

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