China’s economy in H2 will show steady rebound
China’s economy is on track to post a steady rebound in the second half of the year despite downward pressures from a bleak global economic outlook and uncertainties both at home and abroad, officials said. analysts and experts.
While new COVID-19 outbreaks could threaten the pace of recovery, the country’s supply chain will experience less disruption and stimulus measures will play a major role in boosting growth in the second half, they said. declared.
Their comments came as factory activity in China’s manufacturing sector unexpectedly contracted in July on weaker demand after returning to expansionary territory the previous month.
The official Purchasing Managers’ Index, or PMI, for China’s manufacturing sector posted a reading of 49 in July from 50.2 in June, data from the National Bureau of Statistics showed on Sunday. A reading of 50 or higher indicates economic expansion while a reading below 50 is a sign of contraction.
Zhao Qinghe, senior statistician at the National Bureau of Statistics, said the reading came amid weakening market demand, calling for more efforts to consolidate the momentum of recovery in the manufacturing sector.
Ye Qing, a professor at Zhongnan University of Economics and Law in Hubei province, attributed the unexpected contraction to fluctuating commodity prices, as the PMI for sectors such as textiles and oil processing and coal was in contraction territory.
With the government’s effective measures to control the pandemic and stronger political support, Ye said China’s economy is likely to expand by around 6-7% in the third quarter and eventually show gross domestic product growth over the whole year around 4 to 5%.
Data from the National Bureau of Statistics showed that of the 21 manufacturing sectors surveyed, 10 sectors were in expansion territory in July. Ye said these sectors have benefited from recent stimulus measures which have stabilized their growth.
The PMI for sectors such as agricultural food processing and special equipment for manufacturing and automotive manufacturing was above 52 in July, maintaining their expansionary reading for two consecutive months, the BES said.
China’s non-manufacturing PMI was 53.8 in July, down from 54.7 in June. The country’s official composite PMI, which includes both manufacturing and services, came in at 52.5, down from 54.1 in June, according to the National Bureau of Statistics.
Zheng Houcheng, director of the Yingda Securities Research Institute, said weaker demand and output weighed on the economy in July, but stronger macroeconomic policy support is expected to boost the economy going forward. demand, stabilize employment and support the development of the real economy.
For the second half of 2022, a recent meeting of the Political Bureau of the CPC Central Committee called for efforts to consolidate the upward trend of economic recovery, maintain employment and price stability, enable the economy to operate within an appropriate range and seek the best possible outcome.
He stressed that macroeconomic policies should play an active role in expanding demand, and that fiscal and monetary policies should effectively fill any gaps.
Guo Shougang, deputy director general of the equipment industry department at the Ministry of Industry and Information Technology, said the government will seize the historic opportunity of a new round of scientific, technological transformation. and industrial to prioritize the development of smart, internet-connected vehicles. as an important strategic move.
China will accelerate key technological innovations, play the role of major players and innovation centers to make breakthroughs on core technologies, and organize joint research activities to promote applications, such as core computing platforms. and automotive operating systems, he said at the Global Future Science and Technology Innovation Cooperation Conference 2022 held in Beijing last week.
“By focusing on the construction of test demonstration areas and pilot projects for coordinated development between roads and vehicles, we will accelerate the deployment of Internet-based infrastructure and promote the coordination of industry standards,” a- he declared.
Source: China Daily