Fixed asset investment, which reflects infrastructure investment and private facility investment from January to May, increased 6.2% year-on-year. It slowed down from 6.8 percent the previous month. Although the Chinese leadership has ordered to invest in infrastructure through bond issuance, it seems to be stuck in the shackles of blockade.
By industry, investment in the primary industry increased 5.8% year-on-year, and investment in the secondary industry increased 11.0% year-on-year. Investment in tertiary industries rose 4.1%.
By region, investment in the eastern region increased 5.0% year-on-year, 10.9% in the central region, 7.9% in the western region, and 4.4%, respectively, indicating that infrastructure investment in central China was relatively active.
The National Statistical Office explained that despite the complex international environment and the serious situation of the spread of COVID-19 in China, industrial production shifted from negative to positive in May, and the economy is recovering.
Regarding the employment problem, the Bureau of Statistics added that the urban unemployment rate stood at 5.9 percent in May, down 0.2 percentage points from the previous month. However, the unemployment rate of young people under the age of 24 was 18.4%, which was still high.
Major indicators such as Chinese retail sales, industrial production, and fixed asset investment have improved compared to April, but some say they are still below expectations. Under the current situation, the prevailing view is that GDP in the second quarter (April-June) will also receive a lower-than-expected report card.
Meanwhile, Chinese media reported that domestic demand in China is gaining momentum as the shopping event began on June 18 (June 1 to June 18). The June 18 event is considered one of China’s two major online shopping discounts along with the Gwanggun Festival (11, 11).
