The start of a good year for the world’s second largest economy
| A Reuters poll showed China's manufacturing activity fell for a sixth straight month in March, but at a slower pace, suggesting factory owners were still struggling for orders despite some glimmers of hope in the economy. |
The official PMI is likely to have risen to 49.9 in March from 49.1 in February, according to the forecast of 21 economists in the survey. Recent economic indicators have shown that the world’s second-largest economy has had a bright start to the year, helping policymakers to boost growth amid weakness in the property sector and rising local government debt.
Data from the National Bureau of Statistics showed that the profit of Chinese industrial companies increased by 10.2% in the first two months compared to the previous year after a 2.3% decrease in profit for the previous year.
Chinese Premier Li Qiang announced an ambitious 2024 economic growth target of around 5 percent at the annual meeting of the National Congress of the Chinese Parliament earlier this month. Analysts say policymakers will need to add more stimulus to meet this year’s growth target because they cannot count on the low statistical base of 2022 when the country was under strict Covid restrictions.
Many analysts worry that China could face a Japan-style recession later this decade unless policymakers take steps to reorient the economy toward household consumption and resource allocation in the market.
Source: ISNA
| © | Webangah News Hub has translated this news from the source of Young Journalists Club |
