China’s economy will return to normal soon: NDRC official
China’s economy will return to normal track soon as efficient COVID-19 control measures and pro-growth policies gradually produce intended effects, said Meng Wei, spokesperson for the National Development and Reform Commission (NDRC) on Tuesday.
The economic data for April, which were released by the National Bureau of Statistics (NBS) on Monday, showed that the country’s economic growth faces increasing uncertainties and new downward pressure, according to Meng.
Retail sales in April dropped by 11.1 percent year on year, marking the biggest downturn since March 2020, and further shrinking after a 3.5-percent drop the previous month, according to the NBS data. Industrial output in April declined by 2.9 percent from a year earlier, after a 5-percent increase in March.
“In fact, at the beginning of 2020, the sudden outbreak of COVID-19 pandemic also brought an unprecedented impact on China’s economic development, resulting in a significant decline in major economic indicators,” said Meng.
“However, with effective COVID-19 prevention and control measures, as well as solid progress in resumption of work and production, the economy quickly reversed the downward trend and recovered quarter by quarter,” she added.
The country will intensify the adjustment of macroeconomic policies, make every effort to expand domestic demand, make precise efforts to expand effective investment, stabilize market players, help enterprises resume work and production as soon as possible, and effectively improve people’s livelihood, the spokesperson said.
Efforts to ensure commodity supply and stable price
“China’s economy is resilient, with large market space and abundant policy toolbox,” said Meng.
She added that the grain has been harvested year after year, while the production capacity of live pigs and the supply of other agricultural and industrial products and services are also sufficient.
“The country is capable and confident to continue to maintain stable prices. We will adhere to comprehensive policies and precise control, and do our best to ensure commodity supply and stable price,” said the spokesperson.
China will move to guide coal prices within a reasonable range through measures such as improving the mechanism for the production, supply, storage and sales of coal, as well as strengthening the management of market expectations, according to Meng.
By stabilizing coal price, the price of electricity will also settle, so will the overall energy cost, said Meng. She also noted that the country will strengthen the regulation of futures and spot market and severely crack down on illegal acts including hoarding and speculation.