PRC’s economy is inching out of virus slump, data show. The overall index is still in contraction territory, but sales managers are more confident
According to newest data, China’s economy is inching out of virus slump in May. That’s the assessment from the earliest available indicators, which continued the pickup seen in April. Smaller firms were more confident in May than they have been since the outbreak of the coronavirus, with production and new orders up, according to a Standard Chartered PLC survey of companies. Industrial output expanded in April, while consumption and imports continued to shrink.
How those factors play out will be key, as the world’s largest trading nation continues to rely heavily on exports for growth，as reported by media. Analysts believe that ss capacity utilization continues to rise, the strength of the recovery in domestic demand will determine if production acceleration can be sustained. However overseas demand is still sluggish, global demand is weak and financial markets is struggling amid China – US tensions.
HZ Daily. Chinese authorities are boosting consumptions thanks to digital coupons
One of the key way due to quickly recover the economy, is boosting consumptions thanks to digital coupons. In more details, several Chinese provinces and cities are doling out vouchers – delivered to users via third-party platforms such as payment app Alipay and WeChat pay – worth tens of millions of dollars to fuel consumption in sectors on which the Covid-19 outbreak has taken a heavy toll. Residents log in to the apps to redeem the coupons, which can be used for dining, shopping, and travel for a short within a short period of time.
But the Chinese have taken a commanding lead in that most intangible but valuable of economic indicators: optimism. Chinese youth were optimistic about their own country’s future, compared with Western counterparts. In the adult group, almost the majority of Chinese are positive about the future of China, compared with people living in the US.
Optimis is the key to understand Chinse recovery. The American Chamber of Commerce in South China already released on Febrauary a report on the extent of difficulties created by the epidemic, after conducting a survey on companies from the United States and other APEC member economies. According to the survey, “75 % of respondent companies in a survey said they are confident in the prospects for the Chinese economy and will not change their reinvestment plans”. Sales managers are more confident than in April, although the overall index is still in contraction territory.
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