“China's economy is growing steadily but the domestic recovery still remains unstable and unbalanced,” the country’s state planner’s, National Development and Reform Commission (NDRC) Vice Chairman Ning Jizhe noted in an editorial in People's Daily commentary.
Key quotes
“Close attention needed to be paid to new problems that had emerged amid the recovery, such as in the area of employment.”
“Still, China's overall employment situation was generally stable, household incomes were experiencing growth and the country's balance of payments continued to improve.”
“Manufacturers are grappling with new challenges including higher raw material prices, surging logistics costs and global supply chain bottlenecks, and the pace of gross domestic product growth is expected to moderate.”
“Record flooding in central China may have also weighed on business activity in July.”
“Beijing has not included any average annual growth targets in its 2021-2025 economic plan, unlike the previous five-year plan issued in 2016, but has pledged to keep growth in a "reasonable" range over the five-year period.”
Market reaction
AUD/USD remains in daily lows near 0.7385 amid firmer US dollar, covid worries and RBA’s 2021 growth forecast downgrade. The spot is down 0.30% on the day.