China's economy secures positive Q2 growth, steam gathering for further recovery

In Q2, the economy grew 0.4 percent. Due to the complex international environment and the impact of the COVID-19 outbreaks at home and other factors that exceeded expectations, downward pressure on the economy increased in Q2, NBS spokesperson Fu Linghui told a press conference Friday. 

China saw steep falls in major economic indicators in April. Thanks to a slew of supportive policies, the country's major economic indicators posted narrowed declines in May and rebounds in June.

"The economic growth didn't come by easily," Fu said.

The wide-range economic recovery came after central and local governments rolled out a package of pro-economy policies while the country's COVID-19 flare-ups waned thanks to effective prevention and control efforts.

In late May, the State Council rolled out 33 measures in six areas to bring the economy back onto a normal track. Some taxes and fees were scrapped or deferred to reduce business burdens, digital coupons were given to residents to spur spending, and more jobs were created to keep employment stable.

"In the face of the impact of domestic and overseas periodic and unexpected factors, the Chinese economy has stabilized and rebounded in a relatively short period of time, demonstrating its strong resilience and huge potential," Yuan Da, an official with the National Development and Reform Commission, China's top economic planner, told a press conference Thursday.

STRONG RECOVERY SIGNALS 

A growing raft of monthly economic data indicates that the economy is regaining footing.

The country's purchasing managers' index showed China's factory activities returned to expansion territory in June after three consecutive months of contraction, sending a clear signal of economic recovery.

Friday's data showed that China's retail sales of consumer goods went up 3.1 percent year on year in June, reversing the negative growths in April and May. 

China's surveyed urban unemployment rate stood at 5.5 percent in June, down from 5.9 percent in May.

Data aside, visitor flows to shopping malls, cinemas, and restaurants are increasing.

"Our June business revenue grew 45 percent over May. The long queue of customers waiting for our food is back," said Zhang Shengtao, director of operations with Beijing-based popular crayfish restaurant Huda.

KEEPING UP THE MOMENTUM

The NBS cautioned that the foundation for the sustainable and steady recovery of the economy is yet to be consolidated.

The risk of global economic stagflation is on the rise, and there are still some unstable and uncertain factors in China's economic recovery, Fu said.

"However, the Chinese economy is resilient and has great potential, and its trend of long-term growth remains unchanged," Fu noted.

The government has ratcheted up efforts to bolster economy recently. The State Council earlier this week decided to step up support to keep payrolls stable and boost job creation and encourage consumption of green and intelligent home appliances.

The country will build on the recovery momentum to push the implementation of supportive policies to keep the major economic indicators within the appropriate range, Fu said.