The profit growth rate of major Chinese industrial enterprises slowed in the first four months of 2022 due to the resurgence of COVID-19 cases inside the country, official data showed on Friday.
Profits of industrial enterprises each with an annual turnover of at least 20 million yuan (about $2.97 million) rose 3.5% year on year from January to April, compared with 8.5% in the first quarter, the State Bureau of Statistics (NBS) said.
The companies’ combined profits reached about 2.66 trillion yuan in the first four months, the data showed.
During this period, 19 out of 41 industries saw their profits increase year-on-year, while 20 others recorded a decline.
From January to April, profits in the mining industry increased 1.46 times year on year, maintaining rapid growth, while the manufacturing sector reported profits down 8.3%, against a decline of 2 .1% in the first quarter.
From January to April, the profits of industrial companies in the eastern regions fell by 16.7% over one year. In the central and western regions, which were less affected by the epidemic, industrial enterprises saw their profits maintain rapid growth during this period, with increases of 18.2% and 47% respectively. 5% year-on-year.
“The resurgence of COVID-19 cases and global uncertainties caused a decline in profits for industrial enterprises in April,” said Zhu Hong, senior statistician with the NBS.
“However, their performance will gradually recover as the Omicron outbreak stabilizes, factories and businesses resume production in an orderly fashion, and measures to ease business burdens take effect,” said Ms Zhu.
China has adopted a series of measures to stabilize the economy and support market entities, including greater tax refunds and fee reductions, increased financial support and the removal of logistical obstacles.
Several days after a State Council meeting proposed 33 pro-growth measures in six areas, Premier Li Keqiang on Wednesday asked government departments to introduce practical implementation measures of here at the end of May.
Li also urged local authorities to put in place policies that consider local conditions to help market entities overcome difficulties, stabilize and create jobs.
“We will work hard to eliminate bottlenecks in industrial and supply chains, help enterprises overcome difficulties, and create more favorable conditions for the continued recovery of business performance of industrial enterprises,” Zhu said. .