China talks on stagflation risk in global economy

The Chinese economy continues to recover, while the risk of stagflation in the global economy increases, so the basis for such a recovery is still not strong enough, Fu Linghui, spokesman for the State Bureau of Statistics of the People's Republic of China, said at a press conference on August 15 on economic indicators for July, Report informs referring to foreign media.

"In general, in July, the policy of effective and comprehensive coordination of epidemic prevention and control and socio-economic development was effective, and the country's economy continued to recover. However, the risk of stagflation in the global economy is increasing, and the basis for the restoration of the national economy is still not strong," he said.

He also noted that last month, China faced a rather difficult and tense international situation, as well as frequent outbreaks of coronavirus infection within the country, but thanks to the effective coordination of pandemic prevention and control mechanisms, socio-economic development policies and the implementation of a set of measures to stabilize the economy, the country managed to achieve the restoration of production and supply, stability in the field of employment and pricing, active growth of foreign trade.

At the next stage, the relevant departments will focus on expanding domestic demand, stabilizing employment and prices, effectively providing and improving living conditions for the population, and strengthening the foundation for economic recovery, he added.

China's gross domestic product (GDP) grew by 2.5% in the last half of the year, despite multiple local outbreaks of COVID-19, a two-month lockdown in Shanghai, disruptions in production and transport chains. The authorities expect that China's GDP growth rate for the whole year will be about 5.5%.

China's GDP last year, despite the fight against COVID, problems in the real estate market and the energy crisis, grew by 8.1% compared to 2020, which was higher than the official forecast of 6%.