China’s official economic data for May was unsatisfactory, and the unemployment rate hit a new high. Figures released by the Office for National Statistics on Thursday showed that the equivalent of one in five young people is unemployed. China’s central bank cut interest rates again to stimulate consumption.
(Deutsche Welle Chinese website) China’s official announcementyouth unemployment rateAprilreached 20.4%.this datarefers to16-24 year old crowd. It reached 20.8% in May. The overall unemployment rate was 5.2 percent in May, unchanged from April. but,China’s unemployment rateandDoes not fully reflect the situation of the entire country, because unemployment surveys are conducted only in cities. That’s why China officially calls it the urban surveyed unemployment rate.
Meanwhile, in May,The world’s second-largest economy’s post-coronavirus recovery also slows again. Chinese official data showed that industrial production rose 3.5% in May after rising 5.6% in the previous month. Factories are gradually returning to full capacity.
The economic recovery has also been held back by the traditionally important housing market. After years of excessive growth, China’s real estate market continues to weaken. Experts say there is a housing bubble. From the beginning of the year to May, investment in the real estate market fell by 7.2%, a sharper drop than expected.
In addition, the consumption atmosphere is not ideal. The retail industry grew by 12.7% year-on-year, compared with 18.4% in April. This is the main index of private consumption behaviour. Weak domestic demand in China, coupled with near-zero inflation, has slowed the economic recovery.
In terms of foreign trade, it was adversely affected by the weak world economy and high inflation in Europe and the United States. Zhang Zhiwei, president of Baoyin Investment, said on Thursday that all data consistently showed weakening economic momentum.
The People’s Bank of China is trying to stimulate the economy with an easier monetary policy: lowering medium-term lending rates and injecting 237 billion yuan (about 30.6 billion euros). The anticipated moves are aimed at lowering funding costs for commercial banks and encouraging them to make more loans on more favorable terms. On Tuesday, the central bank unexpectedly cut short-term lending rates.
Capital Economics financial analyst Julian Evans-Pritchard doesn’t think the measures will accomplish much. However, these measures still show “Political decision makers grow concerned about China’s economic recovery“。
© 2023 Deutsche Welle Copyright Statement: All content in this article is protected by copyright law and may not be used without special authorization from Deutsche Welle. Any wrongdoing will result in recovery and be subject to criminal prosecution.