Energy News
TRADE WARS
China's economy expected to rebound as zero-Covid era fades
China's economy expected to rebound as zero-Covid era fades
By S�bastien RICCI, with WANG Jiawei
Beijing (AFP) April 16, 2023

China is expected to announce an economic rebound on Tuesday, when Beijing releases its first quarterly GDP figures since abolishing growth-sapping Covid restrictions late last year.

The Asian giant's virus containment policy -- an unstinting regime of strict quarantines, mass testing and travel curbs -- strongly constrained normal economic activity before it was abruptly ditched in December.

The disclosures on Tuesday will give the first snapshot since 2019 of a Chinese economy unencumbered by public health restrictions, with analysts polled by AFP expecting an average of 3.8 percent year-on-year growth in the period from January through March.

But the world's number two economy remains beset by a series of other crises, from a debt-laden property sector to flagging consumer confidence, global inflation and the threat of recession elsewhere.

"The recovery is real, but still in its early stage," said Larry Hu, chief China economist at the investment bank Macquarie.

Any rebound "will be gradual, largely due to the weak confidence" of consumers, which in turn makes companies "reluctant" to hire more staff, he said.

China's economy grew by just three percent in the whole of last year, one of its weakest performances in decades.

It posted a 4.8 percent expansion in the first quarter of 2022, though growth pulled back to just 2.9 percent in the final three months of the year.

- Property perils -

A creeping crisis in the property sector -- which together with construction accounts for around a quarter of China's GDP -- continues to "pose challenges to economic growth", said Rabobank analyst Teeuwe Mevissen.

Real estate was a key driver of China's recovery from the initial wave of the pandemic in 2020, when Beijing managed to stop the coronavirus from spreading widely.

But weak demand has since plagued a sector already afflicted by falling home prices and crippling debts that have left some developers struggling to survive.

The situation appears to have eased slightly in recent weeks as official support helped prices stabilise in March, according to figures released on Saturday by the National Bureau of Statistics.

Economists will also be watching keenly on Tuesday for March's retail data, the main indicator of household consumption.

Retail sales finally ticked up in January and February following four successive months of contraction, according to official figures.

But nearly 60 percent of urban households still prioritise saving money over investing or spending it, up from 45 percent before the pandemic, according to a survey by China's central bank.

Consumer confidence "remains well in negative territory" despite the heartening abolition of Beijing's Covid curbs, said Harry Murphy Cruise, a macroeconomist focusing on the Asia-Pacific region at the ratings agency Moody's.

"Households have long memories and will take time to forget the economic pain of recent years," he told AFP.

- Global tensions -

Beijing has set a comparatively modest growth target of around five percent this year, a goal the country's Premier Li Qiang has warned could be hard to achieve.

While many experts tend to take China's official figures with a grain of salt, most expect Beijing to hit that mark.

An AFP analysts' poll predicted that the Chinese economy would grow by an average of 5.3 percent this year.

That is roughly in line with the International Monetary Fund's forecast of 5.2 percent.

Still, analysts warned that wider global trends could yet weigh on China's recovery.

They include geopolitical tensions with the United States, the threat of recession in other major economies and galloping global inflation.

sbr-bur-mjw/smw

MOODY'S CORP.

MACQUARIE GROUP

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Stocks rally, dollar dips further on easing rate expectations
Hong Kong (AFP) April 14, 2023
Equity markets rallied and the dollar dipped further Friday after fresh data showing continued slowing of inflation, fanning hopes that the Federal Reserve was nearing the end of its long-running campaign of interest rate hikes. The surprise on-month drop in producer prices in March - the biggest since April 2020 - came a day after the consumer price index dropped more than expected, suggesting the central bank's tightening campaign was finally paying off. A higher-than-forecast reading on job ... read more

TRADE WARS
Fossil fuel pledges divide G7 in 'critical decade' for climate

Cities will need more resilient electricity networks to cope with extreme weather

Sun, wind power make record 12% of world electricity: survey

Only 5% of top UK firms have 'credible' net zero plans: study

TRADE WARS
Fish-inspired, self-charging electric battery may help power space applications

Tesla to build battery plant in Shanghai: state media

New 'smart layer' could enhance durability and efficiency of solid-state batteries

Underground water could be the solution to green heating and cooling

TRADE WARS
Wind farms drive away certain seabirds: study

Wind project near S.African elephant park riles activists

UK offshore staff 'want public ownership of energy firms'

Machine learning could help kites and gliders to harvest wind energy

TRADE WARS
High-efficiency sustainable solar cells for IoT devices with AI-powered energy management

ESA developing concepts for commercial-scale Space-Based Solar Power plants

KAUST team sets world record for tandem solar cell efficiency

Microwaves advance solarcell production and recycling

TRADE WARS
Europe's largest nuclear reactor enters service in Finland

Germany ends nuclear era as last reactors power down

How to decommission a nuclear power plant

Framatome to acquire SYSTUS software and engineering services from the ESI Group

TRADE WARS
Dutch refinery to feed airlines' thirst for clean fuel

Low concentration CO2 can be reused as plastic precursor using artificial photosynthesis

Queensland biofuel refinery to turn agricultural by-products into sustainable aviation fuel

Turning vegetable oil industry waste into power

TRADE WARS
G7 pledges to quit fossil fuels faster, but no new deadline

Environmental groups sue EU for labelling gas 'green'

Brazil president meets UAE leader after China visit

Targets for a heating planet: G7 climate commitments

TRADE WARS
Climate pledges of world's top carbon emitters

Unsound climate studies sneak into print: scientists

COP28 head urges 'accessible' global climate finance

UK eco-activists rail against judge's ban on using climate defence

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.