China Prepares For A Boom In Economic Activities In 2022 After Controlling The Virus
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The coronavirus lockdown in major cities in China has resulted in an economic slump in the country. However, the government is pushing up to emerge stronger from the pandemic as the virus is kept under control.
Last month, the Chinese economy started rebounding at a rapid rate, and there are clear indications that the rejuvenation will continue in the next coming months.
China Records Outbound Shipment Growth Of 17.9% In June
Last month, China upped its game in its exports, with outbound shipments growing by 17.9% and hitting $331 billion. This represents the fastest growth pace in the first six months as the country ceased its coronavirus restrictions.
At the same time, the buying power of Chinese consumers has also rebounded from June, which has given the economy a massive boost. The Chinese economy is currently thriving and is likely going to continue in the second half of 2022.
The Chinese government, while planning to hit an annual expansion of 5% in 2021, launched several monetary and fiscal stimulus programs. These included incremental bond sales, rebates, and tax exemptions, as well as a reduction of the benchmark loan prime rates (LPR).
Additionally, the government has decided to improve the economy through several deregulatory moves while ensuring that the country’s financial markets are wide open for overseas capital.
China Records A GDP Growth Of 2.5% In H1
In the first half of the year, China recorded a GDP growth rate of 2.5%, according to o the country’s statistics authority. With the world facing a series of economic uncertainties, it will be difficult for China to achieve a 5.5% growth rate.
But China has an advantage over several other economies. The country has a low inflation rate due to its reasonable supply of agricultural products. Additionally, its massive supply of inexpensive workforce is another area that has improved the growth of its manufacturing industry. This has enabled the country to maintain the prices of several manufactured products at a low level.
Also, China maintained an impressive supply of foreign trade surplus of $97.94 billion last month alone. This has impacted positively on the yuan’s exchange rate in comparison with other major currencies and helped to keep inflation in check.