China’s gold imports hit fresh record in April

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Gold imports to China, already the world’s largest bullion producer, hit a new high in April 2021 since January 2020, when coronavirus sent shock waves across the country and the wider global community.

The world is battling the virus to date thus, economic activity has remained depressed.

According to a report released by the World Gold Council (WGC), China’s gold imports surged to hit 111 tonnes during the month. The imports during the month were up by 73 tonnes from the prior month and by 106 tonnes from the same month a year before.

The higher imports by the country were mainly on account of escalated gold demand and lower local gold supply. However, imports continued to remain well below the average import levels during 2019, the WGC report said.

China produced roughly 380 tonnes of gold in 2020 – recording the same output as the previous year, despite the impacts of the pandemic. The Asian powerhouse is also the world’s largest consumer of gold and is estimated to be sitting on reserves of about 2,000 tonnes.

Australia at 320 tonnes, Russia (300 tonnes), United States (190 tonnes) and Canada (170 tonnes) completed the top five. Zimbabwe produced 19 tonnes according to official figures.

Global gold production is reported to have decreased from 3,300 tonnes in 2019 to 3,200 tonnes in 2020 as a result of the coronavirus pandemic.

Gold production is expected to increase by 5.5% in 2021 to 113.9 Moz and grow to 124.1 Moz by 2024, a 2.9% compound annual growth rate.

China has been escalating its economic activities whilst the wider global community, including the U.S – the world’s largest economy, continues to battle the covid-induced economic slowdown.

However, there are now signs of economic recovery especially among the developed and leading economies amidst a robust vaccination program. Analysts are focusing growth across major economies this year, including developing countries like Zimbabwe.

Equity Axis News

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