China’s economy on the road to recovery

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The August figures for both industrial production, retail sales and investments look better than many expected.

Industrial production increased by 4.4 percent in August, compared to the same time last year. There, according to Bloomberg, analysts had believed in a smaller increase, 3.8 percent.

Retail sales increased 5.4 percent in August, compared to the same month last year. In July, the increase was 2.7 percent. According to Bloomberg, the expectation for the August figure was 3.3 percent.

Investments in fixed assets for the first eight months of the year landed at plus 5.8 percent compared to the same time last year, expectations were according to Bloomberg at 5.5 percent.

Still, the recovery is fragile. Covid outbreaks are appearing in more and more places, and with China’s hard-line lockdowns, it has major repercussions where the disease spreads. Now it also looks as if the fight against covid can be further tightened, ahead of the great congress of the Communist Party of China in October. Also, property prices don’t seem to stop falling, falling every month for the past year.

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