Gold production in China to grow 5% in 2021 while demand is expected to surge 32% - report
(Kitco News) - According to GlobalData, gold production in China, the world's largest gold producer and consumer, is expected to grow by 4.7% in 2021, against a 3.9% fall reported in 2020.
The country's production decline in 2020 was mainly due to the depletion of its gold resources and strict environmental regulations imposed on gold and other minerals which has led to the closure of many small and inefficient mines, GlobalData explained.
Between 2021-2025, the production of gold in China is expected to expand at a CAGR of 1.1%, supported by number of upcoming projects which are expected to be operational during the period.
In terms of consumption, GlobalData noted that China is expected to post a strong growth of 31.9% in 2021, against a sharp fall of 17.7% in 2020.
In 2020, China's gold imports were 78.5% down due to regulatory restrictions and the impact of COVID-19, which led to lower demand for gold jewelry, mainly in the first half of 2020, the authors of the report said.
By Vladimir BasovFor Kitco News
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