As reported by the National Bureau of Statistics, China’s economy experienced a slight improvement during the initial two months of the year. This development comes amid the nation’s reiterated commitment to enhancing domestic consumption.
During the January-February period, retail sales increased by 4.0% compared to the previous year, aligning with the forecasts from Reuters and surpassing the 3.7% year-on-year growth seen in December.
Industrial production rose by 5.9%, showing a deceleration from December’s 6.2% growth but exceeding the 5.3% expansion anticipated by analysts.
Furthermore, fixed asset investment rose by 4.1% year-to-date, outperforming economists’ forecasts at 3.6% growth and marking an improvement from last year’s 3.2% increase.
These statistics were released after policymakers from the world’s second-largest economy revealed a comprehensive strategy to enhance domestic consumption, stabilize the stock market, create a childcare subsidy program, and promote tourism.
As per a report by CNBC, Lynn Song, ING’s chief China economist stated that although the announcement seems to lack specific implementation steps, it offers insight into Beijing’s approach to tackling persistent problems like sluggish income growth and a weak social safety net.
The analyst also expressed optimism, noting that the policymakers’ focus on these issues is a positive sign for transitioning the economy to be more consumption-driven in the long-term.
