Mr. Martins comments come after recent data showed Chinese manufacturing expanded in May.
Recently, data released by the National Bureau of statistics showed that Chinas official Manufacturing Purchasing Manager Index (PMI) in May was 50.6, the report said. Chinas manufacturing activity expanded unexpectedly in May, with Caixin / Markit manufacturing PMI at 50.7, according to a recently released private survey. A PMI reading above 50 indicates expansion and below 50 indicates contraction.
According to the report, Martin said similar economic recovery could be achieved in other Asian markets.
In recent weeks, market performance has run counter to dismal economic data, the report said. In the US, the three major indexes rose strongly in May. In Asia, Japans Nikkei average rose in May. The Stoxx 600 index also rose in May.
Still, Martin cautioned, the market is not recovering strongly.
We have suffered a lot, if we want to see indicators that really reflect the economy, then look at the unemployment figures, he said. By the end of this year, unemployment is expected to reach two figures in developed countries such as the United States and Europe, as well as Australia.
Martin said the world is now transitioning to the new normal.
We will see some cities, States, provinces and even national governments repeatedly block and unseal for fear of a second wave of outbreaks, Martin said. We will also see large-scale deflation, insufficient demand for goods and large-scale restructuring of some core industries. Martin referred to his discussions with large multinational companies, saying those companies talked about starting to rationalize their business and cut staff in the third quarter of this year.
Martin said: novel coronavirus pneumonia is the first wave, and this wave is gradually fading away, but we are facing two or three waves of economic unemployment, bankruptcy and default. They will last until the end of the year.