In May, China's exports jumped by 15.3 per cent year on year (YoY), while industrial output grew by 0.7 per cent YoY, rebounding from a 2.9 per cent decline in April. Retail sales was down 6.7 per cent YoY compared with the 11.1-per cent decline in April, official data showed.

Authorities and analysts, however, have called for continuous support to counter economic headwinds.

"With the COVID-19 impact wearing thin, major economic indicators showed marginal improvements in May," said Meng Wei, spokesperson for the National Development and Reform Commission, noting that the recovery on both the supply and demand side still faces many challenges.

Deeming the current situation as a key point to determine the economic trend of the whole year, Meng said that the commission will spare no effort to promote the implementation of preferential policies to remove the bottlenecks restricting economic circulation, an official news agency reported.

The State Council unveiled 33 measures to stabilise the economy last month, covering policies on investment, consumption, food and energy security, industrial and supply chains, as well as people's livelihoods.

Shanghai, once hit hard by the virus, launched an action plan to expand subsidies for enterprises' epidemic prevention and disinfection and to reduce rent, property tax and urban land use tax for qualified firms, among other measures.

Shanghai's policies provided enterprises with timely support to tide over difficulties, said Wang Peng, an associate professor with the Renmin University of China, suggesting that local policies should reflect the characteristics of different regions and be targeted.

Hainan Province, which is striving to become the country's largest free trade port, granted 20 million yuan of vouchers to boost offshore duty-free shopping and over 100 million yuan of vouchers to support the recovery of tourism and catering sectors.

In east China's Zhejiang Province, supportive measures include advancing major water conservancy and transportation infrastructure projects, building 1,200 km of new urban gas pipeline network and invigorating private investment.

Analysts point out that the country's pro-growth policies are not just helpful for immediate economic recovery, but will also benefit long-term growth by prioritising structural adjustment and sustainability.

China will support private investment and take forward projects that deliver multiple effects as part of the efforts to better spur effective investment, consumption and employment, according to a recent executive meeting of the State Council.

Fibre2Fashion News Desk (DS)