formal Economic data from China Performance in January and February exceeded expectations.Industrial production increased by 7%, exceeding 5% Predictions by economists Growth accelerated from 6.8% in December in a Reuters poll, according to data released by the Office for National Statistics on Monday.
Meanwhile, retail sales rose 5.5%, beating analysts' expectations of 5.2%, but slowing from 7.4% in the previous quarter.
Still, the country's troubled real estate sector continues to weigh on the economy, with investment in real estate development down 9%. Commercial real estate sales are also down by double-digit percentages.
“The national economy maintained its recovery and growth momentum and got off to a stable start,” the statistics bureau said in a statement. The Chinese government typically releases combined data for January and February to correct for distortions caused by the Lunar New Year holiday.
China's unstable domestic demand
Clouding Monday's positive numbers are persistent signs of weak domestic demand in China.new Chinese bank lending declines That was higher than expected in February, according to Reuters calculations based on data from the People's Bank of China.
total RMB loan balance increased by 9.7% Last month's data was the lowest on record dating back to 2003, according to Bloomberg. The slump in borrowing demand is China's central bank made an unexpected rate cut The amount of cash banks have to keep on reserve has fallen, suggesting that stimulus measures are having little effect. And the Chinese government's recommendation to unleash “new quality productivity” (also translated as “new quality productivity”) remains. rhetorical rather than substantiveespecially Deeper structural reforms are lacking. to the country's economy.
While domestic demand is unstable, China aims to achieve 5% GDP growth target Probably this year heavily dependent on export machinery. However, this strategy will also face hurdles for the government. including the EU and Brazilbegins an investigation into China's allegedly unfair trade practices. Apart from this, the United States is considering: Whether to investigate Chinese shipbuilding Following petitions from America's major labor unions.