Chinese economy fully recovered from COVID, shows impressive growth
The Chinese economy has experienced a 4.5 percent growth compared to the previous year, indicating recovery from the COVID lockdowns. Although this growth is significant, there are doubts about the accuracy of these numbers. The Chinese government aims for a growth rate of 2 percent quarter on quarter, but the recovery is slow, and the statistical office acknowledges that it lacks a solid basis due to the complex international situation and domestic demand shortfall. To boost economic growth, the Chinese central bank has recently tightened monetary policy, and the government plans to implement further measures. While it is challenging to estimate Chinese numbers, several indicators, such as strong export figures, better-than-expected retail sales and investment figures, support the growth rate. However, industrial production and the real estate sector are facing challenges.
With a growth of 4.5 percent compared to last year, the Chinese economy is back and China seems to have left the consequences of the COVID lockdowns behind. That is of course a substantial growth. There are always doubts about these numbers, however.
A growth of 4.5 percent year on year and a growth of 2 percent quarter on quarter. That is actually the growth rate they are striving for. It should not be forgotten that the recovery is slow and the Chinese statistical office writes that recovery does not yet have a solid basis due to the complex international situation and the shortfall in domestic demand. Not surprisingly, the Chinese central bank has recently tightened monetary policy and the government also says it will further boost economic growth.
That 4.5 percent is more than economists predicted, is it a credible figure? Estimating Chinese numbers is always very difficult. Chinese can do that faster than they can in Luxembourg, while Luxembourg probably has a somewhat clearer economy.
However, there are more figures that support the growth rate. Export figures for March were strong, retail sales in March were also much better than expected and investment figures were also better than expected. Actually, the only thing is industrial production. And the Chinese real estate sector is also struggling with considerable problems as usual.