fredag 22. mai 2020

How bad are China's economic woes?

While economists say China's economic data can't always be trusted, they now have a new dilemma - there is no data. On Friday, China said it wouldn't be setting a target for economic growth for this year. That's unprecedented - the Chinese government hasn't done this since it began publishing such goals in 1990.

Abandoning the growth target is an acknowledgement of just how difficult a recovery in China will be in a post pandemic era. And while recent figures have shown that China is on the way out of its slowdown: it's an uneven recovery. First, the good news. For the first time since the pandemic hit China - factories are making goods again. Industrial output in April grew by a better-than-expected 3.9% - a marked difference from the collapse of 13.5% in the first two months of this year as massive lockdowns were imposed.