Business & Economy

China’s industrial profits rise 106 pct January through April

Shanghai, China, May 27 (EFE).- The profits of China’s main industrial companies increased 106.1 percent year-on-year in the first four months of the year, according to official data published by the National Bureau of Statistics (NBS) on Thursday.

The agency points again to the base effect – China was hit worst by the pandemic during the first months of 2020 – and offers an alternative data, that the average growth rate over the past two years sits at 22.3 percent.

In April alone, Chinese industrial companies earned 57 percent more year-on-year, although this is a lower growth rate by 35.3 percentage points than in March.

NBS statistician Zhu Hong pointed to a “gradual increase in the base figures” in April last year. This means that the increase in this statistic is likely to be less spectacular in the coming months due to the fact that the Chinese economy was already recovering during those same months of 2020 after having controlled the epidemic.

The statistical office only considers major industrial companies with an annual business turnover of at least 20 million yuan ($3.1 million) to calculate this indicator.

Of the 41 sectors analyzed by the NBS, 39 posted an increase in profits during the first four months of the year while one converted its losses to profits and another recorded lower profits.

The NBS highlights the rise in profits of non-ferrous metal smelting and rolling industries, which multiplied 4.8 times, and those of ferrous metals, which obtained 4.2 times more profits in that period.

Zhu described the indicator’s trend as “rapid and sustained,” but also warned that the industrial recovery is not yet strong, especially in some consumer goods sectors.

High prices of raw materials are increasing pressure on production, he added. EFE

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