China Back On Track

In spite of all the remaining problems, the global economic condition is recovering slightly,
compared to last year. One might say it is not a difficult task to improve from very low figures.
However, some regions of the world are recovering, among them Brazil, and Asia in particular.

China seems to be on track again. China’s gross domestic product (GDP) grew 11.9 percent
year-on-year in first-quarter 2010 up to 8.06 trillion renminbi (US$1.19 trillion), and fixed asset
investments rose 25.6 percent to 3.53 trillion renminbi during the same period. A leading Chinese
government think-tank forecasts the country’s 2010 economic growth would top the 8-percent target
set by the central government by almost 2 percent, and the Chinese Academy of Social Sciences says
China’s GDP will expand by 9.9 percent this year — 1.2-percent higher than last year’s growth rate.
And China is sending out many more positive signals to the world.

Around the globe, air traffic is a serious indicator for the society’s economic climate.
More business flights point to a better industry. China’s largest airline, Air China, just reported
its benefit has more than doubled compared to last year. The reasons for this development are said
to be increased domestic demand and promising forecasts for 2010.

And indeed, other news is very promising, too: According to the Ministry of Human Resources
and Social Security, 2.89 million new jobs were created in China’s urban areas during the first
three months of 2010. In the same period, the urban unemployment rate dropped by 0.1 percent down
to 4.2 percent.

In addition, China’s Ministry of Commerce predicts a 16-percent year-on-year increase in the
country’s retail sales for 2010. Acceleration in urbanization will further boost consumption, says
the ministry, and social welfare improvements will also encourage consumers to spend. The year of
the Tiger is looking good for China: The Asian giant is back on track. Let’s hope this will boost
the forthcoming ITMA Asia + CITME in Shanghai to promising results.

April/May/June 2010