The Q1 GDP data announcement, what is the situation of the paint industry?

Due to the impact of the new cronavirus, China ’s gross national economy in the first quarter of 2020 compared with the first quarter of 2019, after excluding price change factors, actually dropped by 6.8% year-on-year. Everyone must know that the growth rate of China's national economy in the first quarter of last year was 6.4%, and it is now -6.8%. This is a significant decrease.

This means that the epidemic has a huge impact on the Chinese economy. Among them, the GDP created by the "accommodation and catering industry" actually decreased by 35.3% year-on-year, and the GDP created by the "wholesale and retail industry" fell by 17.8% year-on-year ...

So, what about the construction real estate and petrochemical industry related to the paint industry? Below, the editor has compiled relevant content to provide readers with a macro reference for making strategic adjustments for the next quarter.

The GDP created by the "construction industry" shrank by 17.5% year-on-year, and the "real estate industry" shrank by 6.1% year-on-year.

Crude oil is the basic material for the production of coating raw materials, and price fluctuations are closely related to the coating industry.

In the first quarter, crude oil production decreased slightly, and the decline in processing volume expanded. The editor learned from the National Bureau of Statistics that in the first quarter, crude oil production was 48.57 million tons, an increase of 2.4% year-on-year; processed crude oil was 149.28 million tons, a decrease of 4.6% year-on-year.

In 2019, China's GDP has just exceeded 99 trillion yuan, equivalent to 14.363 trillion US dollars. Although this year has been greatly affected by the new coronavirus, the economic growth rate in the first quarter has actually dropped by 6.8%. However, all sectors of China have taken active countermeasures to make the epidemic impact on the Chinese economy for a shorter period of time.

Starting from the second quarter, the suppressed consumption in the early stage will be continuously released in the later period, and will be compensated to a certain extent. Investments that were curbed in the early stage, or the implementation of proactive fiscal and monetary policies, have received double investment. In short, the basic conditions and basic factors supporting the long-term improvement of the Chinese economy have not changed.