China's March Factory Activity Expands for First Time in Six Months

A woman wearing a face mask checks shoes in a shopping mall in Beijing, China, 31 March 2024. EPA/WU HAO
A woman wearing a face mask checks shoes in a shopping mall in Beijing, China, 31 March 2024. EPA/WU HAO
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China's March Factory Activity Expands for First Time in Six Months

A woman wearing a face mask checks shoes in a shopping mall in Beijing, China, 31 March 2024. EPA/WU HAO
A woman wearing a face mask checks shoes in a shopping mall in Beijing, China, 31 March 2024. EPA/WU HAO

China's manufacturing activity expanded for the first time in six months in March, an official factory survey showed on Sunday, offering relief to policymakers even as a crisis in the property sector remains a drag on the economy and confidence.
The official purchasing managers' index (PMI) rose to 50.8 in March from 49.1 in February, above the 50-mark separating growth from contraction and topping a median forecast of 49.9 in a Reuters poll.
Recent upbeat indicators suggest the world's second-largest economy is slowly getting back on better footing, leading analysts to start upgrading their growth forecasts for the year. Policymakers have wrestled with persistent economic sluggishness since the abandonment of China's strict COVID curbs in late 2022.
"March data show the economy is poised for a strong end to Q1," China Beige Book, an advisory firm, said in a note last week. "Hiring recorded its longest stretch of improvement since late 2020. Manufacturing picked up, as did retail."
However, a deep slump in the Asian giant's property sector remains a major drag on growth, testing the health of heavily indebted local governments and state-owned banks' balance sheets.
The official non-manufacturing PMI, which includes services and construction, rose to 53 from 51.4 in February, marking the highest reading since September.
Premier Li Qiang announced an ambitious 2024 economic growth target of around 5% earlier this month at the annual meeting of the National People's Congress, China's rubber-stamp parliament.
But analysts say policymakers will need to roll out much more stimulus to hit that target as they will not be able to count on the low statistical base of 2022 which flattered 2023 growth data.
Citi on Thursday raised its economic growth forecast for China for this year to 5.0% from 4.6%, citing "recent positive data and policy delivery".
China's cabinet on March 1 approved a plan aimed at promoting large-scale equipment upgrades and sales of consumer goods. The head of the country's state planner told a news conference earlier this month the plan could generate market demand of over 5 trillion yuan ($691.63 billion) annually.
Many analysts worry that China may begin flirting with Japan-style stagnation later this decade unless policymakers take steps to reorient the economy towards household consumption and market-allocation of resources, and away from the heavy reliance on infrastructure investments seen in the past.



Mali Gold Production Plunges 23% in 2024

Amadou Dabo displays roughly seven grams of gold he bought from small-scale miners for about $30 in Kalana, August 25, 2012. (Reuters)
Amadou Dabo displays roughly seven grams of gold he bought from small-scale miners for about $30 in Kalana, August 25, 2012. (Reuters)
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Mali Gold Production Plunges 23% in 2024

Amadou Dabo displays roughly seven grams of gold he bought from small-scale miners for about $30 in Kalana, August 25, 2012. (Reuters)
Amadou Dabo displays roughly seven grams of gold he bought from small-scale miners for about $30 in Kalana, August 25, 2012. (Reuters)

Mali's industrial gold production plunged 23% to 51 metric tons last year from 66.5 tons in 2023, the West African country's mines ministry said.

Mali is one of Africa's top gold producers and home to industrial mines operated by international companies including Barrick Gold, B2Gold Corp, Resolute Mining and Hummingbird Resources.

A ministry document showed on Friday that the output number excludes Barrick Gold's December production following the company's dispute with Mali's military-led government related to a mining law introduced in 2023.

Barrick suspended operations at its Loulo-Gounkoto operation last month after authorities seized its gold reserves by helicopter. Four of its employees have been detained since November on charges including money laundering and financing of terrorism, which the company denies.

Mali's new mining code, which raises taxes and seeks to hand over big stakes in assets to the state, makes it uneconomic to invest in new mines or buy operations in the country, several mining chief executives told Reuters this week.

Mali's government says mining companies including Barrick have not been paying their fair share of taxes.

According to the ministry document, Mali's gold production fell below 60 tons for the first time in over three years.

It would stand at 52.7 tons if Barrick met its December forecast of 1.7 tons, the ministry's monthly estimates showed.

The ministry did not provide an explanation for the drop in production.

An official from the mines ministry told Reuters the government's conflict with mining companies could be the reason for the lower output. The sector faces a crisis of confidence after authorities demanded foreign companies migrate to the new mining code and arrested employees and executives, the official added.

According to the ministry's data, Barrick Gold remains the country's biggest gold producer, with an output of 19.4 tons in 2024 excluding December production, followed by B2Gold at 13.7 tons and Resolute Mining at 7.2 tons.

With an estimated 6 tons produced in artisanal mines, Mali's total gold production in 2024 is expected to reach 58.7 tons, the mines ministry said.