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April industrial figures show shifts

CCTV.com

05-17-2016 00:06 BJT

Data released over the weekend shows that China's investment, factory output and retail sales enjoyed stable growth in April but at speeds slightly slower than in the first quarter.

The struggle is real for the Chinese economy. Growth in factory output cooled to 6 percent in April. That was 0.8 percentage points lower than March. Experts say while the overall number represents challenges for China, a break down of different segments shows positive structural changes in the economy. Mining, steel and energy-heavy industries slowed while high-tech sectors grew 9.7 percent.

Fixed-asset investment growth eased to 10.5 percent year-on-year in April, down from the first quarter's 10.7 percent. It's another area of diversion. Investments in infrastructure and manufacturing slowed but those in technology upgrades and high tech services expanded. Analysts say that's positive news.

Analysts say the slowdown in traditional sectors of China's economy confirms that the government has made structural reform one of its top priorities. The government has promised to put inefficient firms known as "zombie" companies on the sidelines. Still, analysts caution that the government should strive to avoid a sharp jump in unemployment.

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