China’s annual Labor Day holiday didn’t mark the end of the COVID-19 pandemic, but it was an opportunity for many people to get out again.
But even with people beginning to spend money and enjoying life again, experts say not to expect massive consumption to quickly reverse the economic damage.
China’s GDP shrank nearly 7% in the first quarter of 2020, its first contraction since 1992. With the easing of travel restrictions among several major Chinese cities, consumption is slowly on the rise.
CGTN spoke to Liu ChunSheng, an associate professor at China’s Central University of Finance and Economics. He said, “The so-called pent-up consumption and growth during the holiday is unlikely to happen. Quarantine policies are different in low, middle, and high-risk areas. These areas are scattered all over China. The levels of work and production resumption are also different. The incomes for the general public were also severely reduced. That’s why pent-up consumption is unlikely.”