China’s economy bounced back in 2021 with its best growth in 10 years attributable to robust exports, but there are signals momentum is slowing on property downturn.
CSI 300 Index up +0.86%, CNYUSD up +0.09%
Growth in Q4 reached a one-and-half-year low after the central bank moved to boost the economy with a cut to a key lending rate for the first since early 2020.
The Chinese economy was struggling with the increasingly cooling property sector and repeated small-scale Covid-19 outbreaks that could affect the performance of its factories and supply chains.
A number of Chinese cities went on high alert before the Lunar New Year Holiday season, as the Omicron variant spread out to more areas, including the capital Beijing.
The economy expanded 8.1% last year, its best growth since 2011 and faster than a forecast 8.0%. The rate was well above a government target of “above 6%,” and 2020s revised expansion of 2.2%.
The economy posted its weakest growth in 44 years in 2020 but recorded a faster recovery than other major economies.