China’s recent tourist spending signifies that the country is far through the pandemic crisis. Despite suffering the most from the COVID-19 pandemic in the first quarter, China showed its eminence with fast economic recovery after successfully containing the virus. However, the economic recovery is arguably skewed towards higher-income groups.
Golden Week spendings indicate a more stable economy
China has just recently celebrated its annual Golden Week holidays. China’s Ministry of Culture and Tourism revealed more than 630 million people travelled around the country during the long holiday. Accordingly, tourist spending surged to $70 billion with movie ticket sales surmounts $580 million. In comparison to last year’s Golden Week records, the scores for 2020 are only around 30%-12% lower.
More about China’s slow, yet constant economic recovery
The surge of spendings in the Golden Week is not the only sign of economic recovery in China. According to CNN, China’s manufacturing activity has been in a constant rise and finally reached its six-month peak in September. Spending rebound also follows the rising manufacturing activity, which adds more certainty to the country’s economic recovery.
China is expected to soar higher. Despite the country’s never-ending trade tensions, China still plays an important role as one of the global suppliers. In fact, China’s Ministry of Commerce recorded a 6% incline in U.S. foreign direct investment into China. A lot of US multinational companies are eager of China’s future growth after the country proved its competence in terminate COVID-19 outbreak.
The absence of low-income households in the economic recovery
China’s poor and rural populations are, on the contrary, neglected. World Bank estimates the average monthly income of this group might drop to 7% in the second quarter. People that fall into the group are mostly construction, manufacture, or other low paying labours of vital activities. This signifies that the economic recovery in China is not whole, with higher-income groups experiencing more than the opposite.
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