Stock market quotes, forex, financial news, forex tools – money-investing.com

Data on the Chinese production and sales show a catastrophic drop

 Breaking News
  • Boeing announced the start of massive layoffs The Boeing Company has no choice but to take drastic measures. The world’s largest manufacturer of space and aviation equipment is forced to reduce the number of staff by 13...
  • Serious drawdown of oil quotes Today, oil is actively declining. A very significant increase in the reserves of “black gold” in the United States caused this drop. Moreover, the fears that Russia will not reduce...
  • Swiss watch makers are in crisis Swiss watch exports in April crashed at a record pace the drop has totaled 81% compared with the same period last year. Halting production and difficulties with sales caused by...
  • The intensification of the conflict between the USA and China leads to reduction of oil prices The energy market has started the trading session rather unsuccessfully. The next round of the trade war between the States and China caused the price fall. Because of this investors...
  • Germany saves Lufthansa An air carrier Deutsche Lufthansa AG has suffered losses because of the spread of the coronavirus pandemic. It became known that the German government had not left the matter unattended...
Data on the Chinese production and sales show a catastrophic drop
March 16
09:00 2020

Usually, official Beijing does not calculate statistics separately for January and February. They prefer combining indicators for both months. Such a calculation scheme has been introduced in order to smooth out fluctuations because the New Year celebration in China does not have fixed dates.

In terms of retail sales, the beginning of the year is usually the most active period. Unfortunately, retail sales in the first two months of the year have fallen by as much as 20.5%. Analysts have suggested that the decline is unlikely to exceed 5%. The National Bureau of Statistics of China has reported that industrial production for this period has decreased by 13.5% in annual terms. Experts did not expect this indicator to decrease by more than 3%. Both values are record high.

Such a cut in economic activity is explained by the very tough and aggressive policy of the authorities in relation to containing the spread of the coronavirus epidemic.

We recall that two months ago, the PRC authorities quarantined large cities. The work of many enterprises was stopped, and employees were forced to stay at homes.

The unemployment rate in urban areas of the PRC grew from 5.2% in December to 5.7% in February.

Since the beginning of the year, investments in fixed assets in China have decreased by almost a quarter, or rather – by 24.5%. Investment in real estate has dropped by 16.3%.

At a press conference regarding the release of reports, officials said that despite the severe blow to the economy caused by the coronavirus epidemic, the effect of quarantine was quite surmountable and temporary.

It was also noted that the fight against the spread of the disease could be called effective. It brings quite visible results, which means the restoration of normal order in the economy in the foreseeable future. Chinese analysts believe that in the second quarter, economic activity will show a significant increase.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment