Foreign direct investment in China decreased by 5.6 percent in the first 5 months
As a new sign of the economic slowdown in China, it is observed that foreign direct investment (FDI) has decreased.
Foreign direct investment to China entered a downward trend in April and May, after rising 0.5 percent annually in dollar terms in the first quarter of 2023 compared with the same period a year earlier.
According to the statement from China’s Ministry of Commerce, foreign direct investment in the country fell 5.6 percent annually to 84.35 billion US dollars in the January-May period.
Foreign direct investment increased 0.5 percent annually in the first quarter of 2023 compared to the same period a year earlier, and declined 3.3 percent in the first four months.
In the same period, China’s Overseas Direct Investments (ODIs) increased 16.1 percent year on year to reach 51.78 billion U.S. dollars.
SIGNS OF SLOWDOWN IN THE ECONOMY
It is observed that the downward trend of foreign direct investment continued in the second quarter, as well as external conditions, as well as the slowdown of the Chinese economy.
The data for May reveal that the economy had difficulties sustaining the growth momentum it took in the first quarter of this year, after the recession in the last quarter of last year.
According to data from China’s National Bureau of Statistics (UIB), industrial production rose 3.5 percent year-on-year in May, down from the 5.6 percent rise in April, while retail sales, which considered the measure of consumption, rose 3.5 percent. 12.7 percent, behind the 18.4 percent increase in April.
Despite the low base caused by the lockdown and quarantine measures implemented in the spring of last year due to the Covid-19 outbreak, the momentum in production and consumption appears to be weak.
On the other hand, the main economic activity data announced by the UİB pointed to a decline in both the manufacturing and non-manufacturing sectors in May. The manufacturing purchasing managers’ index (PMI) decreased 0.4 points to 48.8, while the non-manufacturing PMI decreased 1.9 points to 54.5. (AA)