China's On The Move Again, Economic Outlook Brightens

• Residents of China are increasingly on the move after the country's sudden reversal last month of heavy COVID-19 curbs, despite a surge in infections, pointing to a gradual recovery in consumption and economic activity this year.
• Mobility and spending data -- from subway passenger traffic in three of China's biggest cities to flight volumes to box office collections -- show upticks since late December after Beijing abruptly ended three years of "zero-COVID" policy earlier in the month.
• Subway ridership has begun to pick up as the population is undergoing a psychological shift. They are beginning to move closer to living with COVID-19 as there is currently a surge of infections due to the sudden ceasing of virus curbs.
• The number of passenger flights over China has also increased after the restrictions were abandoned. Still, some indicators show activity has not fully recovered to levels of just a few months ago, and many economists remain cautious about the pace of revival following the faster-than-expected reopening.
• Economists expect the world's second-largest economy to pick up from the second quarter, underpinned by stronger consumption and increased state outlays on infrastructure projects. However, a recovery in the country's embattled property market could take much longer.

(Source: Reuters)