GOOD MORNING FROM LONDON #191
China’s economy, says the FT, continued its strong recovery from Covid-19 in the First Quarter of 2021. Record annual growth rate as China’s output increased by 18.3% January-March 2021. China is the first major economy to emerge from lockdown – by comparison, the euro-zone is still grappling with rising Covid-19 infections + lockdowns which will drag into a double-dip recession. It will recover but not until 2022.
China’s expansion was supported by household consumption as evidenced by retail sales which surged by 34.2% in March. China’s natural habits are shifting from saving to consumption as confidence in the future returns.
Are there problems? Of course. Life is never an uninterrupted progression to unqualified achievement. There is a concern about overheating and bubbles in high asset prices but overall China remains on the right path having emerged from Covid-19 with far less damage than the US/UK/Europe.
More tomorrow – 18 April 2021