Li Keqiang, Chinese Premier, Says "China's Recent Economic Recovery"... Q2 GDP Expected to Show Positive Growth

[Asia Economy Reporter Naju-seok] Premier Li Keqiang of China expressed the view that the Chinese economy has emerged from the shock of the novel coronavirus infection (COVID-19) and has entered a full-fledged recovery phase. Expectations have grown that the economic growth rate for the second quarter of this year, to be announced on the 16th, will record a positive figure.

[Image source=Yonhap News]

According to the People's Daily on the 14th, Premier Li stated at a forum held the previous day with economic experts and businesspeople on the topic of the economic situation, "The impact of the epidemic shock and the global economic downturn has had an unprecedented effect on our country's economy, but through nationwide efforts, the economy has recently entered a recovery growth trend and is gradually stabilizing." He added, "This shows the strong resilience and vast potential for improvement of the Chinese economy, and we must firmly maintain our confidence in development."

With Premier Li's remarks, it is certain that the GDP growth rate of the Chinese economy in the second quarter will record a positive figure. Previously, the Chinese economy had recorded -6.8% due to the shock of COVID-19. Bloomberg News and others have forecasted that the Chinese economy will grow by an average of 2.2% in the second quarter of this year.

He also emphasized the need to focus on employment issues while stabilizing the basic economic structure. He said, "Amid increasing international environmental uncertainties and a still severe situation, domestic economic challenges such as employment issues are also growing, so we must be prepared to continue fighting," but also stated, "We must more vigorously promote reform and opening-up to stabilize the economic fundamentals."

Meanwhile, regarding monetary policy, he reaffirmed the principle of "supplying liquidity reasonably." Some speculate that the Chinese government will adjust the pace of monetary policy easing.