China economy

China’s economy recovering but foundation not solid, premier says

Reuters
China’s economy recovering but foundation not solid, premier says

SHENZHEN. A man walks by port workers' accommodation in the Shekou area of Shenzhen, Guangdong province, China, June 11, 2022.

David Kirton/Reuters

China will strive to drive the economy back onto a normal track and bring down the jobless rate as soon as possible, Chinese Premier Li Keqiang is quoted as saying

BEIJING, China – China’s economy has recovered to some extent, but its foundation is not solid, state media on Tuesday, June 28, quoted Premier Li Keqiang as saying.

China will strive to drive the economy back onto a normal track and bring down the jobless rate as soon as possible, Li was quoted as saying.

“Currently, the implementation of the policy package to stabilize the economy is accelerating and taking effect. The economy has recovered on the whole, but the foundation is not yet solid,” Li was quoted as saying.

“The task of stabilizing employment remains arduous.”

China’s economy showed signs of recovery in May after slumping the previous month as industrial production revived, but consumption remained weak and underlined the challenge for policymakers amid the persistent drag from strict COVID-19 curbs.

China’s nationwide survey-based jobless rate fell to 5.9% in May from 6.1% in April, still above the government’s 2022 target of below 5.5%.

In particular, the surveyed jobless rate in 31 major cities picked up to 6.9%, the highest on record. Some economists expect employment to worsen before it gets better, with a record number of graduates entering the workforce in summer.

Li vowed to achieve reasonable economic growth in the second quarter, although some private-sector economists expect the economy to shrink in the April-June quarter from a year earlier, compared with the first quarter’s 4.8% growth. – Rappler.com

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