Chinese Economy to Rebound Next Quarter, NBS Says

LIAO SHUMIN

(Yicai Global) March 16 — China’s economy will start recovering from the sting of Covid-19 as early as this year’s second quarter, according to the National Bureau of Statistics.

Government action will accelerate the nation’s return to work and facilitate economic stability and health in the second half, the data office’s spokesman Mao Shengyong said today.

Agricultural output is stable and spring plowing is in full swing, he added, saying farmers in China planted winter wheat across 22.1 million hectares of land and that the seedlings had grown well. As of the end of February, the proportion of first- and second-class seedlings in primary production areas was up 3 percentage points from a year earlier, and more space had been allocated for vegetables.

Industrial production fell overall but the manufacture of important materials grew, Mao continued, saying the value added in large industries was down by 13.5 percent annually during the first two months. The value added fell 7.9 percent at state-backed firms, 14.2 percent at joint-stock companies, 21.4 percent at firms backed by investors from overseas, including Hong Kong Macao, and Taiwan, and 202 percent at private enterprises.

By industry, value added fell 6.5 percent in mining, 15.7 percent in manufacturing, and 7.1 percent at utilities.

Mask production more than doubled over the period, while alcohol output grew 15.6 percent. Frozen meat and instant noodle production also rose 13.5 percent and 11.4 percent.

Chinese firms also made more high-tech products, with output of smart watches more than doubling, smart bracelets jumping 45.1 percent, discrete semiconductors rising 31.4 percent and integrated circuits climbing 8.5 percent. Production of pig iron rose 3.1 percent, crude steel 3.1 percent, flat glass 2.3 percent and non-ferrous metals 2.2 percent.

The service industry production index for January and February was down 13 percent, though the figure for the financial sector grew 4.5 percent and for the data transmission, software and information technology services sector rose 3.8 percent. All other industries declined.

Editor: James Boynton