The recovery trend of the Chinese economy, which removed the restrictions

The Chinese economy showed a recovery trend in the first two months of 2023, despite weak global demand and persistent problems in the real estate sector, with rising consumption and infrastructure investments.

With China lifting strict coronavirus restrictions at the end of 2022, the $18 trillion economy, which has seen the lowest growth rates in nearly 50 years, has revived. Analysts expect momentum to pick up in the coming months.

GROWTH OF INDUSTRIAL PRODUCTION

A series of economic data was released in China today, including urban investment, industrial production and real estate sales.

According to data released by China’s National Bureau of Statistics (NBS), industrial production grew 2.4 percent in the January-February period compared with the same period last year, slightly below expectations for the 2 .6 percent of analysts polled by Reuters. Manufacturing grew 1.6 percent in December.

SALES INCREASE

Retail sales increased 3.5 percent in the first two months of the year compared to the same period of the previous year, reversing the 1.8 percent annual drop registered in December. The result, which was in line with analysts’ expectations, supported hopes for an economic recovery as China’s exports weakened on falling global demand, while consumption remained strong.

Data released today also revealed results in line with signs of strengthening seen in the February manufacturing PMI data released on March 1.

“These data confirm the results indicated by current data, including the manufacturing PMI, and reduced disruptions due to coronavirus led to a rapid improvement in economic conditions earlier in the year,” said Julian Evans-Pritchard, chief economist. for the Chinese economy at Capital Economics. (Reuters)