Chinese Statistics Office Expects Economic Situation to Improve in May

BEIJING (Sputnik) - The economic situation in China may improve in May thanks to noticeable progress in combating COVID-19 outbreaks in several regions, including Shanghai, and the resumption of normal life and production, Fu Linghui, spokesman for the Chinese National Bureau of Statistics, said on Monday.

"The epidemic had some negative impact on economic activity in April. The growth of value added in China's large industry decreased by 2.9% year-on-year in April, while retail sales of consumer goods fell by 11.1%," the spokesman said during a press conference, adding that all the difficulties caused by the coronavirus outbreak are temporary and "economic performance is expected to improve in May."

The Chinese economy is highly resilient to various risks as major industries are receiving strong support while the overall social environment is stable, the spokesman noted.

A new surge in COVID-19 cases persisted across China since early March, prompting the government to enforce lockdowns in several regions. Last week, the country's national currency, yuan, hit a record low since October 2020, reaching 6.7134 against the US dollar.

It comes after in April, the International Monetary Fund (IMF) slightly downgraded its forecast for economic growth in China to 4.4% this year and to 5.1% in 2023.