Regarding China's April economic data reflecting that the recovery may be slowing down, especially in terms of manufacturing, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, pointed out that there is no need to over-interpret weekly or monthly economic data. He believes that the current vitality of the Chinese economy is very strong.
According to latest data from the National Bureau of Statistics, China’s manufacturing PMI stood at 49.2 in April, down 2.7 points from March. The reading was below 50, indicating that the sector was in contraction territory.
China’s Non-Manufacturing Business Activity Index stood at 56.4% in April, a drop of 1.8 points month-on-month. New order index was 56, also down 1.3 points month-on-month.
The IMF said that China has been the main engine of economic growth in the region and the world for the past few decades, but China's economic growth may slow down in the next few years. Therefore, priority should be given to implementing structural reforms to promote long-term economic growth by encouraging innovation, promoting digitalization, and accelerating green energy transition.
