The second largest economy in the world is picking up speed again in terms of growth. After the corona restrictions were lifted, experts expect that consumers will now make up for the spending postponed by the lockdown. However, this could ensure persistently high prices on the world market.
After the end of the corona restrictions, growth in China is picking up speed. The purchasing managers' index for industry rose by 2.5 points to 52.6 points in February, the highest level since April 2012, according to the statistics office in its monthly business survey. The barometer is now well above the growth threshold of 50 points. The forecast of the analysts was exceeded.
The barometer for service providers jumped by 1.9 to 56.3 points, which is the highest value for almost two years. "The data points to a strong start for the Chinese economy in 2023," said Commerzbank economist Tommy Wu. "It will rebound this year as the end of the zero-Covid policy boosts demand and allows supply chains to normalize." Above all, consumer spending should provide momentum, which would have suffered particularly from the lockdown measures of the past three Corona years.
Many Chinese were able to spend less money than usual during the pandemic, as travel and dining out were severely restricted. This money could now be spent lavishly, with the catch-up effect stimulating consumption.
The International Monetary Fund (IMF) expects economic growth of 5.2 percent in China this year. In 2022, due to recurring corona lockdowns, it was only enough for an increase of three percent. The expected acceleration is good news for the German economy, since the People's Republic is its most important trading partner. With a foreign trade turnover of almost 298 billion euros in 2022, China was Germany's most important trading partner for the seventh year in a row.
"Fortunately, China's momentum will also be able to support global growth again," said NordLB analyst Bernd Kampen. But that could also have an unpleasant side effect: China's higher demand should "speak for persistently high prices in general on the world market," said Kampen.
