BEIJING: China’s economic recovery faces pressure from sluggish consumer and export demand, a government official said Tuesday after retail sales and other activity in April were weaker than expected.
Chinese activity accelerated while US and European economic growth is cooling following interest rate hikes to extinguish inflation. But consumer spending, an important economic engine, is taking longer than expected to recover after most Chinese curbs on business activity and travel ended in December.
“The recovery of demand is still insufficient,” said Fu Linghui, spokesperson for the National Bureau of Statistics, at a news conference. “External demand has weakened,” and exporters face a “complex and severe” environment.
Retail sales accelerated to 18.4 percent over a year earlier in April, official data showed, but that was below private sector expectations of up to 35 percent.
Factory output rose 5.6 percent but was off 0.5 percentage points from March. Investment in factories, real estate and other fixed assets rose 4.7 percent in the first four months of 2023 but slowed from the first quarter’s 5.4 percent growth rate.
Economic growth accelerated to 4.5 percent over a year earlier in the three months ending in March from the previous quarter’s 2.9 percent. The economy will have to grow faster in coming quarters if it is to hit the ruling Communist Party’s annual target of “around 5 percent.”
“The bulk of China’s rebound is now behind us,” Capital Economics said in a report. “The challenging global picture will prevent much pickup in Chinese exports.”
China recovery faces pressure after April activity weaker than expected: official
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China recovery faces pressure after April activity weaker than expected: official
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
