CNR:
We have noticed that in the first half of the year, the economy in some regions was severely affected by the COVID-19 epidemic, so how about their current situation? Moreover, how about the performance of China's regional economy on the whole? What are your comments? Thank you.
Fu Linghui:
Thanks for your questions. Indeed, since the first half of this year, the epidemic has had a severe impact on the economic operation of some regions. However, it should be noted that the impact is short-term and external and will not change the general and coordinated development trend of the regional economy. In the first half of the year, especially in the second quarter, our well-coordinated efforts to respond to COVID-19 and pursue economic and social development have witnessed positive effects. With the implementation of a package of policies and measures to stabilize growth, China's economy has gradually overcome the adverse impact brought about by the epidemic and accelerated its recovery. Positive changes have been witnessed in some regions that were hit hard by the epidemic.
First, in the second quarter, the economy of most regions was basically stable. In terms of growth, in the second quarter, among the country's 31 provinces (autonomous regions and municipalities), 26 of them maintained their GDP growth, accounting for 83.9% of the total number. From the perspective of employment, the surveyed urban unemployment rate of 19 provinces (autonomous regions and municipalities) in the second quarter was lower than the national average, of which the surveyed urban unemployment rate of the western region was 5.5%, 0.3 percentage points lower than the national average level. In terms of prices, the price rise in most regions was moderate, and the consumer prices in 30 provinces (autonomous regions and municipalities) rose less than 3% year on year in the second quarter
Second, central and western regions saw sound economic growth. In the second quarter, the GDP of central and western regions increased by 2.3% and 2% year on year, respectively, both faster than that of the whole country. In the first half of the year, the growth of central and western regions was faster than that of the eastern region, with their added value of industries above designated size both increasing by 7.3% year on year, 5.1 percentage points faster than that in the eastern region. Fixed asset investment in central and western regions increased by 10.7% and 8%, respectively, faster than that in the eastern region by 6.2 and 3.5 percentage points, respectively.
Third, some areas were hit hard by the epidemic. The normal order in work and life in these regions was affected to a certain extent, thus, the local economy declined, and the unemployment rate increased in the short run. In the second quarter, the GDP of Shanghai and Jilin fell by 13.7% and 4.5% year on year, respectively, while the surveyed urban unemployment rate in Shanghai and Jilin stood at 12.5% and 7.6%, respectively, significantly higher than the national level.
Fourth, the economy of regions hit hard by the epidemic accelerated the recovery. Although the economy of some regions in the second quarter was severely affected by the epidemic, on a monthly basis, the main economic indicators in these areas improved notably in June. These improvements were made when the epidemic response was moving in a positive direction, and enterprises sped up their resumption of work and production. The added value of industries above the designated size in Shanghai and Jilin increased by 13.9% and 6.3% year on year in June, and fell by 30.9% and 4.9%, respectively in May. In terms of consumption, retail sales of units above designated size in Jilin increased by 5.5% in June and fell by 1.5% in May. In terms of employment, the surveyed urban unemployment rates in Shanghai and Jilin fell by 9.7 and 0.8 percentage points respectively in June compared with those in May, indicating that the economic recovery in these regions is steadily accelerated.
Generally speaking, the economy in most regions of China is stable. The growth rate of central and western regions is faster than that of the eastern region, while the trend of regional coordinated development has not changed. Some regions have encountered temporary difficulties due to the epidemic; however, as various policies and measures have been implemented to stabilize the economy, their economy has accelerated the recovery. Of course, we should also see that the problem of unbalanced economic development in China is still prominent, and the development gap between regions is large. Going forward, we will continue to implement major regional development strategies and coordinated regional development strategies, narrow the regional gap, and promote coordinated and sustainable economic development. Thank you.
