After a big break, China’s economy takes jump by 4.8% by March 31. Due to Covid 19 outburst, the last two years didn’t show any improvement in-country growth. The covid situation changes the people living and expending lifestyle due to less income and unemployment. According to the National Bureau of Statistics, the growth of 4% was quicker in the world’s second-largest economy registered in the previous quarter. But still a little slump because of some places still under covid lockdowns. Many Businesses were suspended their manufacturing and servicing operations like automakers company Volkswagen and Tesla and iPhone assembler Pegatron due to lockdown.
Retail sales declined by 3.55 compared to last year. But good thing is that industrial production grow by 5% in the month of March compared to the last two months i.e 7.5%. According to NBS Spokesperson, China’s economy is facing many challenges and difficulties. The covid outbreak not only disturbed production but also hurt some sectors like catering, tourism, and transportation services also hit hard. The rate of unemployment also increases up to 16% a record high due to COVID Shock. The youngster aged 16-24 had a record high covid shock. But, the Chinese govt. still have hope to the country will show some sudden growth i.e 5.5%, which is the lowest in the last three decades. Now not only covid hurt but also Russia Ukrain war which has driven up Oil and some commodity price high which also affects the economy of the country. But one of the economists believes that China will show some positive growth by year-end at 5%.
SHANGHAI, the epicenter of the recent covid outbreak also some other cities i.e approx. 45 cities are still not open fully also responsible for affecting the economy. With all these problems and hard times, the china govt. comes with the list of 666 companies that can resume fully from manufacturing to services. Approx. 40% are automaker companies or companies involved in the auto industry. But it is unclear when to start these companies because china’s zero covid strategies are still a key risk. In reality, the economy is in distress and china doesn’t want an again lockdown. Also China govt. decided to reduce the interest rate to boost the economy of the country. People wish to take more loans to start new businesses and firms which leads to increased in-country growth. Banks also announced to cut to reserve requirement ratio which means the bank will hold very less cash as a reserve and lend more in the market, which also helps in company economy growth.