China: After reopening, economy rebounds weaker than expected

2023-03-27T22:27:31.220Z

The profits of Chinese industrial groups fell by 22.9% in January and February, according to official statistics released on Monday (March 27th). A new sign weaker than expected...China: After reopening, economy rebounds weaker than expected The profits of Chinese industrial groups fell by 22.9% in January and February, according to official statistics released on Monday. A new weaker than expected sign of the world's second largest economy. AFP - STR Text by: RFI Follow 1 min The profits of Chinese industrial groups fell by 22.9% in January and February, according to offic

China: After reopening, economy rebounds weaker than expected

The profits of Chinese industrial groups fell by 22.9% in January and February, according to official statistics released on Monday. A new weaker than expected sign of the world's second largest economy. AFP - STR

Text by: RFI Follow

1 min

The profits of Chinese industrial groups fell by 22.9% in January and February, according to official statistics released on Monday (March 27th). A new weaker than expected sign of the world's second largest economy.

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From our correspondent in Beijing, Stéphane Lagarde

China is still waiting for a recovery, after three years under zero Covid. Data from the National Bureau of Statistics showed a decline in the revenues of industrial companies in the first two months of the year. Rising costs and falling prices at the exit of factories, but above all domestic demand still sluggish, despite the bluster of the state media that grind in a loop on the theme of recovery.

Chinese households continue to spend cautiously, while current accounts are filled to the brim with precautionary savings estimated at $2.600 trillion. "The Chinese consumer remains stunned by what happened (during the pandemic) and is not in the mood to splurge right now," said the new chief executive of Maersk in an interview with the Financial Times.

Real estate crisis and Sino-American tensions

Like others, the boss of the world's second-largest container shipping group was hoping for a faster rebound after the end of "zero Covid" restrictions late last year.

A large part of Chinese savings remains invested in real estate in crisis in China. Added to this is another psychological brake on spending, heightened geopolitical tensions between China and the United States. China's cautious State Council set its growth target for this year at 5 percent, its lowest level in decades.

China: After reopening, economy rebounds weaker than expected

China: After reopening, economy rebounds weaker than expected

Real estate crisis and Sino-American tensions

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