On 16 of May 2022 or This Monday, the National Statistic Bureau of China released it’s retail sales data. That data declined by 1.1 percent for a yearly range period on April this year.
This declined is in fact deeper than the expectation of 6.6% decline and continue it’s worse trend than some months ago. Then restrictions policy was made and applied by government.
Those big cities are like Beijing and Shanghai. This action is for sure bringing a negative impact for a consumption sector. Besides that, last month sales decline became the worst one as well.
It was especially after a 15.8% slipped for March 2022 period. That was when the COVID-19 pandemic spread so wide. Every country experienced a heavy time in that moment and faced the dark future.
China Manufactucturer Output Declined as Well
You should know that the manufacturers output in China was not great enough and declined. Besides that, infestation is slowing down too. The signs of economic deceleration at the beginning of second quarter is clearer.
The industrial production or manucaturer output also slumped by 2.9%. It comes together Besides from bad retail sales release, It was for yearly type and happened in this April.
This change was quite surprising for many parties because under the expextation of 0.4 percent raise. Furthermore, it also slumped too far from a 5.0% increase in March.
Asides from that, the investment sector in China is also experiencing a deceleration. You may check them from the fixed asset investment Where it rose by only 6.8% or slipped from 7.0% projection.
The Deceleration in China is Quite Significant
Before, it was noted that a growth in China was for about 9.3%. So, from many changes and data shown, it is clear that the business and investments sectors in that country experienced a drastic deceleration.
In an employment sector, lockdown due to the spread of coronavirus since March made many companies fired their employees. This situation triggers the unemployment value that is higher than before.
Based on the data, the unemployment percentage increased from 5.8% to become 6.1% in April. COVID-19 pandemic occured in that month really brough a huge impact for China’s economy.
However, an analysts predicted that the effect is just for a short term period and external too. Generally, fighting omicron isn’t easy, but this country never gives up.
Zero Case Policy will be a big Challenge Faced by China
A rule which is targeting for getting the 0 case of COVID-19, the Fed interest Rate increase, and world commodities price turbulence making are a huge challenge ahead.
It is especially if that country want to grab the economy growth target of 5.5% in 2022. April this year is a time where China experienced the worst contraction ever since the first quarter of 2020.
It was a moment of the first flow of pandemic. The continuous lockdown in Shanghai finally triggers The late domestic stock supply chain as it is informed by an economist from Oxford economics.
Elsewhere, Gold Tries to Rebound
The price of gold rose above the level of $ 1825 per troy ounce amid the weakening of the US Dollar. The index of that major currency fell from a 20-year high.
It was following a profit-taking action and doubts over the effect of rising interest rates in America which made that USD rose more.
Market participants have so far predicted that volatility in the gold market will continue. Particular amid the inflationary pressures and uncertainty surrounding the outlook for global economic growth.
The latest economic data showed that the America’s inflation rate remained at a 40-year high. Mean whil, the core inflation occured so far also managed to exceed expectations of the people.
