- Official data showed that in spite of some indicators contracting in April, the country’s economy is on track to recover.
- “The fundamentals of the Chinese economy remain unchanged.”
- “In the long and medium-term I’m quite bullish on China’s economy,” WEF President Borge Brende told Xinhua in an interview, noting that China’s stable economic growth is of great significance to global recovery.
With its good long-term fundamentals, China is projected to continue to function as a stabiliser for the global economy while it struggles with a lingering epidemic and mounting headwinds as reported by English News.
Participants at the World Economic Forum’s (WEF) Annual Meeting 2022, which ended on Thursday, cautioned that the global economic picture has “darkened” due to rising uncertainty.
“We are seeing more weaknesses in the global economy,” said Gita Gopinath, the IMF’s first deputy managing director, in an interview with Xinhua at the World Economic Forum in Davos, Switzerland.
If China can deal with the “near-term headwinds in terms of COVID” and others, Gopinath added, “of course, it will stay as one of the primary engines of growth.”
Recovery on track
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.
“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 favourable conditions for stabilizing the economy and achieving the expected development goals.
“The fundamentals of the Chinese economy remain unchanged.”
Also in the report, the organization slashed global growth forecasts to 3.6% in 2022 and 2023.
Bolstering international cooperation
From the global economy’s perspective, China’s growth has implications for global trade and for growth in other parts of the world.
So far, the country has become the largest trading partner of more than 120 countries and regions.
In the first four months, the country’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, China’s cabinet, detailed more measures to stabilize and upgrade foreign trade on Thursday.
With a 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 the global supply chain, analysts said.
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Source: English News