Official data from China’s National Bureau of Statistics (NBS) just released on January 31 showed that the country’s manufacturing activity grew in January 2023, following four consecutive months of decline. The country’s economy is recovering following easing strict restrictions due to the COVID-19 epidemic.
The world’s second-largest economy is bouncing back following the government’s surprise decision last month to abandon policy.”Zero COVIDwhich includes regulations social blockade severely affect the operations of businesses.
According to NBS, the purchasing managers index (PMI) – a key measure of Chinese factory output – rose to 50.1 this month, from 47 recorded in December.
NBS statistician Zhao Qinghe said China’s pandemic prevention measures have “entered a new phase,” allowing the country to “gradually return to normal life.”
Previously, on January 30, International Monetary Fund (IMF) has raised China’s 2023 Gross Domestic Product (GDP) forecast to 5.2%, due to China’s decision to fully reopen its economy.
The PMI in the non-manufacturing sector, which includes the services and construction sectors, stood at 54.4 in January 2023, up from 41.6 in December 2923. This is much higher than the 52-point forecast of economists surveyed by Bloomberg.
[Kinh tế Trung Quốc khởi sắc ngay từ đầu Năm mới 2023]
Production activity usually slows down during the Lunar New Year holiday (which falls in the last week of January 2023), when workers go home to celebrate Tet with their families.
But service consumption has picked up as millions of Chinese are traveling freely for the first time in three years.
Background China’s economy growth of only 3% last year, the lowest rate in 4 decades, excluding 2020 due to the pandemic hit, amid the restrictions of the COVID-19 epidemic and the crisis in the real estate market has impede growth.
The pent-up demand accumulated over three years of strict pandemic control will lead to a strong recovery in China, the IMF said.
Passenger travel during the peak holiday tourism season in China reached 892 million from January 7-29, an increase of 56% over the same period in 2022.
Minh Trang (VNA/Vietnam+)
