The Chinese economy performed unevenly in the first two months of 2024, according to official numbers released Monday, with sluggish household consumption offset by increasing industrial production, indicating an uneven rebound.
The highly anticipated recovery after Beijing relaxed tough COVID-19 control measures in late 2022 was less than predicted, and the world’s second-largest economy is currently dealing with property market volatility, high youth unemployment, and declining consumption.
Retail sales, the primary measure of household consumption, grew 5.5% year on year in January and February, according to China’s National Bureau of Statistics (NBS).
However, the figure was lower than in December, when it increased by 7.4 percent, and slightly lower than the outcome forecast by a Bloomberg survey of analysts, who predicted a 5.6% gain.
The recording period included China’s main Lunar New Year holiday, which falls this year in early February and typically causes a rise in consumption in the previous weeks.
Meanwhile, industrial production increased by 7.0 percent year on year in January and February, exceeding the 6.8 percent increase in December and the 5.2 percent forecast by Bloomberg.
Retail sales, the primary measure of household consumption, grew 5.5% year on year in January and February, according to China’s National Bureau of Statistics (NBS).
However, the figure was lower than in December, when it increased by 7.4 percent, and slightly lower than the outcome forecast by a Bloomberg survey of analysts, who predicted a 5.6% gain.
The recording period included China’s main Lunar New Year holiday, which falls this year in early February and typically causes a rise in consumption in the previous weeks.
Meanwhile, industrial production increased by 7.0 percent year on year in January and February, exceeding the 6.8 percent increase in December and the 5.2 percent forecast by Bloomberg.
The property sector, which has long been a critical development engine for China’s economy, is now facing unprecedented pressure, with many large developers on the edge of bankruptcy and dropping prices discouraging real estate investment.
The country’s urban unemployment rate increased slightly to 5.3% in January and February from 5.2% in December.
The ratio was 14.6% for the 16-24 age group, according to a revised definition that excludes students, implemented after a record high was set last year.
Beijing has set a target of 5% annual GDP growth this year, one of the slowest official goals in decades.
China’s economy recovered from deflation in February, the first time in six months.