China’s Economy shows Strength
China’s economy showed positive signs for the first two months of the year as Beijing reaffirmed its intention to boost domestic consumption.
The January-February period saw a 4 percent increase in retail sales compared to December’s 3.7 percent year-over-year growth, consistent with Reuters’s forecasts. In the first two months of the year, industrial production increased 5.9 percent compared to the same period last year.
This was faster than the analysts’ 5.3 percent expansion forecast in a Reuters poll but slower than the 6. 2 percent growth in December. According to the statement, industrial output growth accelerated in the high-tech manufacturing and equipment-making sectors, increasing by 9.1% and 10.6% annually, respectively.
The data follows the announcement of a comprehensive plan by Chinese policymakers to boost domestic consumption with Beijing’s promises to increase residents’ household spending and income. Beijing’s plan to stabilize the stock market, create a childcare subsidy program, and increase tourism was reiterated in the notice, which was published on Sunday
Fixed asset investment, as reported year-to-date, increased by 4 points, a significant increase from the 3. 2 percent increase last year, and exceeded the 3.6 percent growth predicted by economists.
The Chinese statistics agency credited the improvement in economic activity at the beginning of the year to “sustained effects from several stimulus measures while pointing to “a more complicated and challenging external environment, insufficient domestic demand, and difficulties for enterprises in operation and production.
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