China’s Economy Beats Expectations and Rebounds Faster than Anticipated
An individual with knowledge of the situation has revealed that China’s economy is recovering faster than anticipated by high-ranking officials during the reopening after the Covid outbreak. This indicates that the government will likely refrain from implementing new stimulus measures this year.
The source stated that the wave of infections that occurred following the sudden removal of pandemic restrictions ended sooner than anticipated, allowing for a rapid recovery of the economy as the majority of the population was infected by the end of January.
As a result, the Chinese state media has been instructed to convey to the public, during the National People’s Congress, that the country’s leaders are content with the current pace of the economic rebound and that the need for additional stimulus is minimal.
The government is seeking to sustain the economy rather than provide extra support. Key data released this week revealed that the manufacturing and consumer sectors are recovering strongly, with housing sales increasing for the first time in 20 months.
Despite this positive news, the economic outlook is still uncertain given the weak global growth and rising interest rates. Although many economists expect the government to set a growth target of more than 5%, the likelihood of a significant stimulus package is low, and it is expected that monetary and fiscal policies will remain supportive.