2023-09-16 15:45:10
In recent weeks, the government has increased its announcements of tax benefits for households and businesses to support consumption. Several measures have been launched to revive the country’s economy.
However, activity remains penalized by the global economic slowdown which is weighing on demand for goods in China and therefore exports. But the Chinese economy is mainly slowed down by the unprecedented real estate crisis in the country.
China published on September 15 a series of economic indicators better than estimated by economics during the month of August, following targeted support measures from Beijing to stimulate growth in the world’s second largest economy.
Retail sales, the main indicator of household consumption, increased last month by 4.6% year-on-year., according to official figures from the National Bureau of Statistics (NBS). Analysts surveyed by the Bloomberg agency expected a more moderate acceleration (3%), following a 2.5% increase in July in this index, which is closely followed by the markets. This is its first acceleration since June and its strongest progression since May.
To revive the real estate sector, several large cities including Beijing and Shanghai have relaxed their criteria for benefiting from a mortgage loan, while first-time buyers have obtained the renegotiation of their loan rates.
No results are conclusive at the moment. Real estate prices fell once more over one month in China in August. 52 cities out of a reference panel of 70 are now affected by this drop, compared to 49 in July and 38 in June, according to BNS figures.
For his part, industrial production accelerated sharply in August (+4.5% year-on-year). This pace is much faster than in July (3.7%) and higher than analysts’ expectations (3.9%).
The unemployment rate fell slightly in August in China for the entire working population to reach 5.2%, according to official figures which no longer mention the rate for 16-24 year olds following a record in June (21.3%). In China, the unemployment rate is calculated for urban areas only and therefore only provides a partial picture of the situation.
Finally, investment in fixed capital slowed to 3.2% year-on-year in the first eight months of the year. This is the fourth month of decline in this indicator which reflects spending on real estate, infrastructure, equipment and even machines, sectors on which the government has relied in the past to stimulate growth. ‘activity.
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