Chinese economy continues its pandemic bounce back

Key economic data in China surged dramatically in the first two months of 2021, pointing to a continued recovery for the world's second largest economy. China's industrial output grew 35.1% in January and February compared to the same months last year. The strong numbers are distorted because they are compared to 2020, when most of China's factories were in pandemic lockdown. But Monday's slew of economic data still beat analysts' expectations.

Industrial output was up 16.9% compared with the first two months of 2019, highlighting the stronger output. A rebound in foreign demand has helped push export growth higher for China, often called the world's factory. The Chinese government has set a modest annual economic growth target for 2021, at above 6%, even though analysts are tipping growth of around 8%. China was the only major economy last year to report positive growth, with an expansion of 2.3%.

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