BEIJING, July 22 (Xinhua) -- China registered better-than-expected economic recovery in the second quarter as the country took "swift and determined actions" to contain the impact of the COVID-19 epidemic, an Asian Development Bank (ADB) official said Wednesday.
The recovery "has been impressive, exceeding expectations," Yolanda Fernandez Lommen, ADB's Country Director of the People's Republic of China Resident Mission, said in an exclusive interview with Xinhua.
"A proactive fiscal policy, an accommodating monetary policy, concerted efforts to support small and medium-sized enterprises, and policies targeting lower-income groups are good examples of the good policy choices behind the economic performance," Fernandez Lommen said.
China's economy grew 3.2 percent year on year in Q2, following a 6.8 percent contraction in Q1, according to data from the National Bureau of Statistics (NBS).
"The recovery has been driven by the supply side of the economy," she said, as China's industrial activity, including construction, has been picking up pace.
NBS figures showed that China's value-added industrial output expanded by 4.4 percent year on year in Q2 as factories stepped up production amid COVID-19 control. Indicators such as fiscal revenue, foreign trade and foreign direct investment also charted substantial recovery, especially in June.
She said China's concerted efforts to shore up the economy were quite "instrumental."
Meanwhile, retail sales, a gauge of consumption, declined by 3.9 percent year on year in Q2, shrinking by 15.1 percentage points from the first quarter's decrease.
"The sustainability of the growth momentum rests on the demand side of the economy, and increased consumption and investor confidence, underpinned by a stable labor market, are the key," Fernandez Lommen said.
As the COVID-19 pandemic evolves globally, she said, it is critical to contain the impact of the pandemic from "both the health and economic points of view at the country and global levels."
According to the World Health Organization (WHO), over 14.56 million confirmed COVID-19 cases were reported as of Wednesday.
"At the global level, difficult times require exceptional efforts, and strengthened global cooperation is essential in the containment of the pandemic and the reactivation of the world economy," Fernandez Lommen said.
The ADB official suggested that China continue the existing initiatives to support income and employment to sustain growth through enhanced social protection policies.
"Social protection strengthening is essential to supporting the recovery in the current challenging environment," she said, and targeted approaches may be needed to protect the most vulnerable from falling back into poverty. Enditem
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