China’s 2021 gold consumption jumps by a third on-year as economy grows

China is the world’s biggest importer of gold. Image: Tidarat Tiemjai | Shutterstock

China’s 2021 gold consumption rose by over a third from the previous year, as its economy rebounded from the coronavirus impact, the China Gold Association said on Thursday.

Consumption in the world’s largest gold consumer rose 36.53% year-on-year to 1,120.9 tonnes. It was also up 11.78% compared with consumption in 2019, before the pandemic.

“In 2021, under the remarkable results of China’s overall economic development and epidemic prevention and control, domestic gold consumption generally maintained a recovery trend and achieved rapid growth compared with the same period (in 2020),” said the association in a statement.

Growth in China’s gold consumption was led by gold jewellery, jumping 44.99% to 711.29 tonnes on-year. Gold bars and coins consumption gained 26.87% in 2021 to 312.86 tonnes.

China’s economy rebounded in 2021, with its best growth in a decade, helped by robust exports in a post-coronavirus lockdown comeback.

The association also said that the country’s gold output in 2021 fell 9.95% year-on-year to 328.98 tonnes.

The annual decline in output was attributed to the shutdown of mines in Shandong and Henan, China’s major gold producing provinces, after some gold mine accidents required safety inspections and rectifications.

(By Emily Chow; Editing by Himani Sarkar and Rashmi Aich)

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