With a growth of 4.5 percent compared to last year, the Chinese economy is back and China seems to have left behind the consequences of the covid lockdowns. “This is, of course, considerable growth,” says BNR in-house economist Han de Jong, who adds that he thinks it’s great that China can measure its growth so accurately. “There are always doubts about these kinds of figures.”
4.5% year-over-year growth and 2% quarter-over-quarter growth. “That’s actually the growth rate they’re aiming for,” says De Jong. However, the recovery is proceeding in fits and starts and the Chinese statistical office writes that the recovery still lacks solid foundations due to the complex international situation and the lack of domestic demand. Unsurprisingly, China’s central bank has recently eased monetary policy and the government also says it will further stimulate economic growth.
“The recovery in China primarily benefits Germany, and we are addressing that”
Credible
That 4.5 percent is more than economists predicted, is that a credible figure? According to De Jong, estimating the Chinese figures is “always very difficult”. He thinks it’s great that the Chinese can calculate how fast their economy has grown. “They can do it faster than in Luxembourg, while Luxembourg probably has a more manageable economy.”
“Society has obviously reopened and the economy is restarting”
More numbers
However, there are more figures that support the growth figure. March exports data was great (‘and it might as well be true’), March retail sales were also much better than expected and investment data was also better than expected. ‘In fact, the only thing that is industrial production.’ And China’s real estate sector is also grappling with significant problems as usual.
The fact that the Chinese economy is doing well has an impact on the Dutch economy: Germany is the largest economy in Europe and has “pretty strong export interests to China”. The recovery in China therefore mainly benefits Germany, and “we have close economic relations with Germany”.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
