Economics
China’s Soaring Economic Activity Masks Uneven Recovery
- Industrial production, retail sales growth beat forecasts
- Data distorted because of comparisons from lockdown a year ago
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China’s economic activity surged in the first two months of the year compared with a year ago, though the figures showed an uneven recovery with strong industrial output fueled by exports but lagging consumer spending.
The official data released Monday show unprecedented growth rates of more than 30% for key indicators, largely due to distortions when compared to last year’s shutdowns. Industrial production growth of 35.1% beat economist’s expectations of 32.2%, reflecting a shorter Lunar New Year holiday this year as the government encouraged workers to remain in factories rather than return to their hometowns.