Beijing

Official data and a survey in China has revealed that 1 in 5 young workers in cities are unemployed. The numbers showed that consumer spending and other activity in the month of April were weaker than expected. Retail sales have accelerated after end of Covid restrictions in December but they are still below forecasts. Factory output was lower than that in March as well.

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China's economic activity has improved. But consumers are still uneasy about possible job losses. This has had an effect on less footfall in shops and restaurants.

"The pace of recovery has slowed sharply,” said Larry Hu and Yuxiao Zhang of Macquarie in a report. They have been quoted by Associated Press.

According to the numbers available, factory output rose 5.6 per cent than over a year ago. However, it was off 0.5 percentage points off from March. Investment in real estate, factories and similar fixed assets rose 4.7 per cent in first four months of 2023. However, it slowed 5.4 per cent from the first quarter.

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“The recovery of demand is still insufficient,” said Fu Linghui, spokesperson for the National Bureau of Statistics.

“External demand has weakened” and exporters face a “complex and severe” environment, Li said at a news conference.

Fu Linghui was quoted by Associated Press.

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Surveys have reportedly found that 20.4 per cent of potential urban workers between the ages of 16 and 24 are unemployed and that the unemployment figure was rising. According to Associated Press, this is a record.

“Stabilizing and expanding employment of young people will require continued hard work,” Li said.

Economic growth has accelerated to 4.5 per cent than the year earlier in three months ending in March. In the previous quarter, the growth was 2.9 per cent compared to the previous quarter. The Communist Party has kept 'around 5 per cent' as the annual target of the economic growth. Growth will have to accelerate in coming quarters if it is to hit the target.

“The bulk of China's rebound is now behind us,” Capital Economics said in a report. “The challenging global picture will prevent much pick-up in Chinese exports.”

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