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Why China’s Recovery is Not What it Seems

The data also showed that industrial production was 5.6 per cent higher and the data left most analysts convinced that China’s recovery from the ravages of the Covid-19 pandemic was both solid and sustainable.

published by
Financial Times
 on September 18, 2020

Source: Financial Times

On Tuesday, China’s National Bureau of Statistics released August data on the Chinese economy. It showed that while retail sales -- a proxy for domestic consumption (although it includes other things) -- was down 8.6 per cent for the first eight months of 2020, it nonetheless posted its first monthly year-on-year increase in 2020, with retail sales 0.5 per cent higher than last year.

The data also showed that industrial production was 5.6 per cent higher. Add to that a 4.16 per cent rise in fixed asset investment and a 19.3 per cent increase in August’s trade surplus, and the data left most analysts convinced that China’s recovery from the ravages of the Covid-19 pandemic was both solid and sustainable.

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This article was orignally published by the Financial Times.

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