China’s economy shows healthy recovery, solid macro fundamentals: economist – Xinhua
Video: Albert Keidel, a development economist specializing in East Asia, says China’s economy started the year on a high note, with the country able to maintain stable and healthy growth despite headwinds . (Xinhua)
“Overall data on manufacturing growth, investment growth and especially high-tech investment growth rates appear to depict a healthy acceleration in 2022,” says Albert Keidel.
NEW YORK, March 24 (Xinhua) — China’s economy has started the year on a high note, with the country able to maintain stable and healthy growth despite headwinds, a senior U.S. economist has said.
“Global data on manufacturing growth, investment growth and particularly high-tech investment growth rates appear to depict a healthy acceleration in 2022,” said Albert Keidel, a development economist specializing in Asia. of the East, to Xinhua in a recent interview, commenting on the situation in China. January-February economic readings recently released by its National Bureau of Statistics.
“China’s macroeconomic fundamentals are very good” because “the GDP investment rate is still very high,” said Keidel, an assistant professor of economics at George Washington University.
Workers use equipment to process liquid aluminum at an aluminum plant in Baise Town, south China’s Guangxi Zhuang Autonomous Region, Feb. 18, 2022. (Xinhua/Cao Yiming)
China’s economy has maintained a steady recovery in the first two months, with leading output and demand indicators pointing to solid year-on-year growth, official data showed in mid-March. .
In January and February, China’s value-added industrial production and consumer goods retail sales rose 7.5 and 6.7 percent year on year, up 3.2 and 5 percentage points, respectively, than in December of last year.
China’s fixed asset investment rose 12.2% year-on-year in the two months, while high-tech investment rose 34.4% with rapid growth in investment in manufacturing and services. high-tech services.
The economist, formerly a senior fellow at the Atlantic Council, a US think tank, said China’s already high levels of investment across the board, combined with its continued efforts to support demand, are “not a good solid formula” for growth.
At the same time, China’s sustained policy focus on urban growth and the further integration of rural labor into the formal urban labor supply “is good for the growth of the middle class and its contribution to consumption growth,” he said.
A worker works at an electric car factory in Huaibei, east China’s Anhui Province, Jan. 1, 2022. (Photo by Wan Shanchao/Xinhua)
Keidel, also a former senior economist at the World Bank’s office in Beijing, noted that the marked increase in investment in high-tech manufacturing is “a real testament” to China’s ability to react quickly to international uncertainties to reduce risks in related sectors.
While virtually every sector has potential, areas such as new energy automobiles, industrial robots and solar cells will become increasingly promising, especially as the country is committed to achieving green development. and high quality, he said.
“China’s plans for stronger aggregate demand through fiscal expansion, including at the local level, will combine with the already high rate of GDP investment to generate healthy strong GDP growth,” he said. said Keidel.
Noting that China’s economy still faces multiple challenges, including the Omicron epidemic and geopolitical uncertainties, Keidel said he believes in the country’s decision-making ability and ability to mobilize resources on the fiscal and financial plan to deal with economic headwinds.
China’s response to the economic fallout from the COVID-19 pandemic “has proven to be targeted and in adequate quantity”, he said.
A customer shops at a supermarket in Lianyungang, east China’s Jiangsu Province, Feb. 16, 2022. (Photo by Wang Chun/Xinhua)
“China has been very smart in putting funds, especially with their e-finance capabilities, which are so complex and really well developed, to be able to put money in people’s accounts so they can spend it. “, he said, adding that the move “was a really very creative solution, an alternative to a massive spending spree.”
Keidel expressed confidence in China’s sustained economic recovery and future growth.
China’s 2019-2021 two-year average GDP growth was 5.1%, and its overall output in 2021 was on a growth trajectory, laying a stable foundation for the country to meet its growth target this year.
In addition, China’s recent policy proposals ranging from fiscal stimulus to financial easing will facilitate a healthy recovery, the economist said.
“This kind of multi-faceted approach means to me that if China can match its high rate of investment to GDP with an expansion in demand, that growth is bound to be healthy,” Keidel added. ■