MNI POLICY: China Economy Not Yet At Normal Levels: Official

By Wanxia Lin

     BEIJING (MNI) - China's economy has not yet returned to levels seen in

previous years, despite April's economic indicators showing a pick up from March

levels, said Liu Aihua, a spokeswoman for the National Bureau of Statistics

Friday.

     The monthly gains in April were still only a part recovery, said Liu,

noting that the industrial output, service industry production index, fixed

asset investment, retail sales and trade were still lower for the first four

months of the year, falling 4.9%, 9.9%, 10.3%, 16.2% and 4.9%, respectively.

     China still has the momentum of a sustained recovery, with certain leading

indicators like newly-started investment projects and power consumption turning

positive by end-April, said Liu, when asked if the economy would stabilize in

Q2.

     Here are other keypoints made by Liu:

     - Though industrial output first turned positive in April, downside risks

remain. About 85% of industrial companies' productivity has hit only 50% of the

normal level, Liu added.

     - There were 3.54 million new jobs added in January to April, 1.05 million

less than the same period last year, indicating that the scale of employment is

shrinking. 

     - By the end of April, the number of migrant workers returned to about 90%

of previous year levels, while 8.74 million college graduates entering the job

market this year would also added to employment pressures, Liu added.

     - The sales of some big ticket items are picking up, with car sales in

April flat. This will help enhance the overall retail sales rebound and narrow

the decline.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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