China’s economy is still months away from a full recovery, business survey finds

China has not fully recovered from the shock of the coronavirus pandemic, business leaders said in a survey by the China Beige Book released Tuesday. After about a year since Covid-19 first emerged in the Chinese city of Wuhan, roughly two-thirds of executives polled by the third-party firm said they don’t expect sales, profitability and hiring to return to 2019 levels until at least three months from now.

China Beige Book conducted more than 3,300 interviews between Nov. 12 and Dec. 11 in its latest quarterly business activity survey. The survey’s tepid outlook contrasts with generally optimistic forecasts for China, the only major economy in the world expected to grow this year in the wake of the pandemic.

Government commentary in the last few weeks have also signaled concerns about overall economic growth. While economists predict China’s gross domestic product will likely expand about 2% this year, consumers have so far spent less than they did last year as many remain uncertain about future income.

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