China’s economy still struggling to recover even after covid: report

Beijing: After months of stagnancy, China is beginning to show recovery trends suggesting a rapid ‘economic expansion’ for the second quarter, according to Bloomberg.

Since the scourge of Covid a couple of years ago, China remained the worst affected just as the world recovered from the impact while Chinese authorities pursuing strict covid rules until recently.

The situation peaked to severe crisis rousing public anger, which prompted the government to withdraw convid restriction, thus opening the nation to travel and normalcy.

However, post covid scenario was not bright as the government had anticipated with growth hitting stagnancy.

Now the country is again picking up momentum, despite what Bloomberg said, ‘underlying figures will reveal a more challenging picture.’

Compared to last year, the Asian giant reported on Monday better outlook of gross domestic product data.

On a year-over basis, GDP marked a 7.1 growth which is up from 4.5 per cent in the previous period, the report said based on a detailed analysis of several countries including US, Canada, Asia and Latin America.

Unlike what it was in the first quarter of 2023, GDP probably rose 0.8 percent; however, industrial production, retail sales and fixed investment are likely to show a ‘ marked slowdown in June’.

This is especially noticeable in retail sales growth which slipped to 3.3 per cent from 12.7 per cent in May.

Despite the proclivity to change, China reported shrinking manufacturing, looming deflation, failing export, reduced holiday spending letting down economists, the report said.

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