Economic activity in China grows again after three months
The main economic activity data in China’s manufacturing and non-manufacturing sectors indicate that the economy began to grow again in the new year after contracting in the last quarter of 2022.
The official Purchasing Managers’ Index (PMI) released by China’s National Bureau of Statistics (UIB) revealed that economic activity increased in the manufacturing and non-manufacturing sectors in January.
The manufacturing PMI increased 3.1 points to 50.1 compared to the previous month, while the non-manufacturing PMI increased 12.8 points to 54.4.
Values above 50 in the PMI indices indicate an increase in economic activities, and values below indicate a decrease.
Both indices remained below the growth threshold in October, November and December 2022.
THE SIGNS OF RECOVERY ARE CLEAR
After the restrictions due to Covid-19, which hindered economic activities, were lifted on December 7, 2022, it is seen that the signs of recovery become evident with the new year.
The new orders subindex in the manufacturing industry reached its highest level since July 2021 at 50.9 percent. The manufacturing production sub-index held at 49.8, but increased 7.2 compared to last month.
UIB Senior Statistician Cao Chinghi assessed data showing production and life in the country gradually returned to normal after the measures were lifted.
‘CHINA WILL GROW 5.2 PERCENT IN 2023’ IMF FORECAST
On the other hand, the International Monetary Fund, IMF, in its updated World Economic Outlook report, noted that the Chinese economy is expected to grow by 5.2 percent in 2023.
IMF chief economist Pierre-Olivier Gourinchas said: “Covid-19 restrictions and outbreaks have affected economic activity in the past year.
We anticipate that with the reopening of the economy, activity and mobility will increase and growth will rise to 5.2 percent.
China’s economy had grown 3 percent in 2022. Gross Domestic Product (GDP) growth was below the world average for the first time in more than 40 years. (AA)