The richest provinces of China have been urged by the country’s premier to support pro-growth policies financially.
Consumption and output in the nation unexpectedly decreased in July.
Premier Li Keqiang stated that “a feeling of urgency must be fostered to cement the foundation for economic recovery.”
The second quarter of this year saw a severe slowdown in China’s economic development due to an unyielding zero-Covid stance.
China’s central bank reduced lending rates on Monday in an unusual step to boost demand.
In a video conference with top officials from six main provinces that collectively produce around 40% of the country’s GDP, Guangdong, Jiangsu, Zhejiang, Shandong, Henan, and Sichuan, Mr. Li stated that the Chinese economy continued to improve in July but had “minor fluctuations.”
According to Mr. Li, the government would take more measures to increase investment efficiency and consumption.
Coronavirus lockdowns have severely impacted both businesses and consumers in China, the second-largest economy in the world.
The GDP decreased 2.6% from the previous quarter in the three months that ended in June.
Major Chinese cities, including the important manufacturing and financial hub Shanghai, were either completely or partially placed under lockdown at this time.
Beijing’s zero-Covid stance hasn’t yet showed any indications of relaxation, though.
The country’s manufacturing and retail industries are struggling to recover from the effects of the lockdowns, according to key economic statistics. Retail sales increased 2.7% in July over the same month last year. However, the amount fell short of June’s 3.1% figure and missing predictions for 5% growth. The most recent data revealed that young unemployment is at an all-time high.
Homebuyers are losing trust in the ability of developers to execute their projects, which is having a significant negative impact on the real estate market. The rate of decline in real estate investment was 12.3% last month, the highest rate of this year, while the decline in new sales widened to 28.9%.