China’s Economic Recovery Slowed in April
In April, China’s economic recovery in the aftermath of Covid-19 grew at a slower pace as retail sales did not meet expectations. This has complicated the idea that China is recovering steadily and at a consistent rate as the world’s second-largest economy. Official data that was released today details how industrial output and fixed asset investment have beat market expectations, however, domestic consumer spending has lagged behind. Comparing 2020 and 2021, China’s industrial production was up 9.8% for the month, slower than March’s 14.1% rate.
Fixed-asset investment also saw a decline, alongside retail sales. Retail sales are a key gauge of China’s domestic consumption. Economists expected an increase in economic recovery, however, they now predict that the low-base effect will fade given the trajectory over the first half of 2021.
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