China recovery faces pressure after April activity weak, youth unemployment rises
Retail sales accelerated following the end of anti-virus restrictions in December but were below forecasts, official data showed Tuesday. Factory output edged down compared with March.
Chinese leaders face pressure to shore up a slowing economic recovery and generate jobs after consumer spending and other activity in April were weaker than expected and a survey found 1 in 5 young workers in cities was unemployed.
Retail sales accelerated following the end of anti-virus restrictions in December but were below forecasts, official data showed Tuesday. Factory output edged down compared with March.
Chinese economic activity has improved while the US and European economies are cooling after interest rate hikes to extinguish inflation. But consumers, uneasy about possible job losses, are returning to shops and restaurants less quickly than expected.
The pace of recovery has slowed sharply, said Larry Hu and Yuxiao Zhang of Macquarie in a report.
Growth in retail sales accelerated to 18.4 per cent over last year's depressed level in April, but that was below private sector expectations of up to 35 per cent.
Factory output rose 5.6 per cent over a year ago but was off 0.5 percentage points from March. Investment in factories, real estate and other fixed assets rose 4.7 per cent in the first four months of 2023 but slowed from the first quarter's 5.4 per cent growth rate.
The recovery of demand is still insufficient,? said Fu Linghui, spokesperson for the National Bureau of Statistics.
External demand has weakened? and exporters face a complex and severe environment, Li said at a news conference.
Surveys found 20.4% of potential urban workers aged 16 to 24 are unemployed and the figure was rising, according to Li.
That was a record, according to private sector economists.
Stabilizing and expanding employment of young people will require continued hard work,? Li said.
Economic growth accelerated to 4.5 per cent over a year earlier in the three months ending in March from the previous quarter's 2.9 per cent. Growth will have to accelerate in coming quarters to hit the ruling Communist Party's annual target of around 5 per cent.
The bulk of China's rebound is now behind us, Capital Economics said in a report. The challenging global picture will prevent much pick-up in Chinese exports.
Catch the latest stock market updates here. For more news on sports, politics follow Zee Business
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
01:55 PM IST