China giving priority to job, price stability
A passenger rides on a bus travelling past a Chinese flag in the rain, before the 25th anniversary of the former British colony's handover to Chinese rule, in Hong Kong, China June 30, 2022. PHOTO: REUTERS
China will make great efforts to consolidate its economic recovery, particularly in the crucial third quarter, putting a priority on stabilising employment and prices, state media reported after a regular cabinet meeting.
The world’s second-biggest economy narrowly missed a contraction in the second quarter, growing just 0.4% year-on-year, weighed down by Covid-19 lockdowns, a weak property sector and cautious consumer sentiment. The government has set a 2022 growth target of
around 5.5%.
Major hurdles in the second half include China’s persistent zero-Covid policy that entails curbs and restrictions that could again disrupt local businesses, employment and consumption. To spur growth, authorities have dusted off an old playbook, issuing debt to fund big infrastructure projects.
“We will make great efforts to consolidate the foundation of economic recovery, strive to stabilise the economy and keep the economic operation within a reasonable range, give priority to ensuring the achievement of the goal of stabilising employment and prices,” state media quoted the cabinet as saying.
The nationwide survey-based jobless rate eased to 5.5% in June from 5.9% in May, but youth unemployment hit a record 19.3%.
Published in The Express Tribune, July 24th, 2022.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.