China’s Economic Activity Soars, but Masks Year-Long Uneven Recovery

• Economic activity in China soared during the first two months of 2021, but recovery remains uneven a year after the country imposed draconian lockdowns around this time in 2020. National Bureau of Statistics (NBS) data released earlier in the day said that industrial production grew 35.1% year-on-year in February, above the 30% growth in forecasts prepared by Investing.com and the previously recorded 7.3% growth.
• Retail sales also soared 33.8% year-on-year in February, against the predicted 32% growth and the previously recorded 4.6% growth. The unemployment rate was at 5.5, higher than the previously recorded 5.2%.
• The spectacular growth rates of more than 30% for key indicators in the data are largely attributable to distortions when compared to 2020’s lockdowns. It also indicated a rebound happening at uneven rates, with strong industrial output and export demand against lagging consumer recovery.
• China is the only major economy to have returned to economic growth after imposing 2020’s lockdowns as COVID-19 spread. Soaring global demand for medical goods and work-from-home devices has also given the recovery a boost.
• The economy grew 2.3% in 2020 and is forecast to expand 8.4% in 2021, although the recently-ended National People’s Congress set a more modest growth goal of “above 6%.” There are also signals that the government will gradually scale back COVID-19 stimulus measures.

(Source: Investing.com)