China’s economy showed signs of recovery in August

August economic data released in China shows that the country is facing difficulties in recovery after Covid-19.

The National Statistics Office (UIB) released the data set made up of industrial production, retail sales and fixed capital investments, covering the month of August and 8 months in the country.

Consequently, industrial production, which calculates the output of industrial enterprises with an annual turnover of more than 20 million yuan (about 2.79 million U.S. dollars), increased by 4.5 percent in August compared with the same period last year, surpassing the 4.4 percent increase in the previous month.

Retail sales, which are considered the measure of consumption, rose 4.6 percent annually in August, outpacing the 3.7 percent increase in July.

Although fixed capital investments, which include spending on infrastructure, real estate, machinery and equipment, rose 3.2 percent annually in the eight months through August, they remained below the 3.4 percent increase at the end of seven months.

REAL ESTATE AND PRIVATE SECTOR PROBLEMS CONTINUE

Although the decline in investments in the real estate sector continues, where debt problems are becoming increasingly deeper, it also drags down all investments in fixed capital.

While real estate investments decreased by 8.8 percent in the eight-month period in August, they continued their decline compared to the 8.5 percent drop in the seven months.

Through August, private sector investments declined 0.7 percent in 8 months compared to last year, outpacing the 0.5 percent decline in 7 months.

It has been observed that government policies to encourage the growth of the real estate sector and the private sector have not yet yielded results. (AA)