China's abandonment of COVID-19 restrictions in late 2022 has boosted the revival of its approximately $18 trillion economy, which had seen the lowest growth rates in nearly half a century. Analysts expect momentum in the Chinese economy to increase in the coming months. Data from the National Bureau of Statistics of China, released on Wednesday, showed that industrial output rose by 2.4% in the period from January to February compared to last year. This figure is slightly below the expected increase of 2.6% from a Reuters survey. It represents an increase from the 1.3% year-on-year rise recorded in December.
Retail sales surged by 3.5% in the first two months of the year compared to last year, marking a turnaround from a year-on-year decline of 1.8% recorded in December. This figure aligns with analysts' forecasts and hopes that consumption will lead the economic recovery as global demand declines, which is impacting China's exports. Infrastructure investment rose by 9% year-on-year in the first two months, driven by government spending aimed at supporting the economy. However, investment in the real estate sector still fell by 5.7%, reflecting caution among homebuyers and property developers.
