2023-05-16 07:02:01
BEIJING (AP) — China’s economic recovery is being weighed down by weak export and consumer demand, a government official said Tuesday, following worse-than-expected data on retail sales and other indicators in April.
Chinese activity picked up as economic growth eased in the United States and Europe after interest rate hikes to combat inflation. But consumer spending, a major economic driver, is taking longer than expected to recover after most of China’s restrictions on activity and travel were lifted in December.
“The recovery in demand is still insufficient,” Fu Linghui, a spokesman for the National Bureau of Statistics, told a news conference. “External demand has weakened” and exporters face a “complex and serious” environment.
Sales growth increased to 18.4% from a year earlier in April, according to official data, below private sector expectations of up to 35%.
Manufacturing production grew 5.6%, although it was 0.5 percentage points below the March figure. Investment in factories, real estate and other fixed assets rose 4.7% in the first four months of 2023, although it was down compared to the 5.4% increase in the first quarter of the year.
Economic growth accelerated to 4.5% year-over-year in the three months ending in March from 2.9% in the previous quarter. The economy will have to grow faster in the coming quarters in order to reach the annual target of the Communist Party, which governs China, of “around 5%.”
“The bulk of China’s recovery is over,” Capital Economics said in a report. “The challenging global outlook will prevent many increases in Chinese exports.”
1684221818
#Official #Weak #consumption #hampers #Chinas #economic #recovery