15 Dec 2020
As the world continues to battle the coronavirus pandemic, China seems to be ahead of other major economies in its recovery with its industrial output and retail sales boosted. Experts are expecting China to undergo a healthy growth in 2021.
The latest reports highlighted that China’s industrial production increased by 7% in November year-on-year whereas retail sales were also up by 5%. This matched Bloomberg’s estimates, which were set from a survey of economists.
Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong noted, “China’s economy continued to accelerate across all fronts in November. We expect output to remain above-trend in the coming quarters, even as tailwinds from stimulus and exports start to ease.”
Following the release of this data, Oxford changed its predictions for China’s 2021 growth from 7.8% to 8.1%, whereas Bloomberg’s economists forecasted that growth will be up to 5.9% this quarter.
In order to minimise financial pressures, on Tuesday, the People’s Bank of China added liquidity by investing 950 billion yuan of one-year cash as a lending facility.
Despite seeing an increase, retail sales remain lower than that of last year and hospitality venues have noted a drop of 0.6% last month, when compared to the previous year.