A recent work meeting held by Chinese politburo on April 30 proposed to “treat the Q1 economic data dialectically.”
According to the National Bureau of Statistics (NBS), China’s GDP grew by 18.3 percent in Q1 compared to the same period of 2020.
The shocking growth, according to analysts, was due to the relatively low data in 2020 impacted by the Covid-19 pandemic and China’s fast production recovery. Compared to the data in 2019, Q1 GDP grew by 10.3 percent, a 5 percent average growth over past two years, which the NBS believes is a proof of stable growth.
The politburo warned at the meeting that present growth is “not balanced” and “lacks solid basis.” To be more specific, present growth was largely spurred by the export soar in the background of the Covid-19 pandemic, while the growth in consumption, especially those among the middle and lower classes, lag behind the economic growth.
For these reasons, the politburo emphasized to further deepen the supply-side reform and increase industrial input to aid the rebound.
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