China GDP: five things to keep an eye on
China’s first-quarter economic surge was primarily a reflection of how hard the world’s second-largest economy was hit by the Covid-19 pandemic early last year, rather than the strength of its recovery.
While gross domestic product grew more than 18 per cent year on year between January and March, its increase over the final quarter of 2020 was just 0.6 per cent.
China is expected to post a year-on-year headline number of about 8 per cent when the National Bureau of Statistics reveals its estimate for second-quarter growth on Thursday. The focus, however, will be on signs of economic sluggishness and whether these are worrying enough for the government to adjust policy.
Here are five things to look out for after Thursday’s announcement.
Will industrial production and fixed asset investment growth decelerate?
China’s economy received a big boost from industrial production, up 24.5 per cent year on year in the…