Business activity in China at new lows
2022.12.19 02:42
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Business activity in China at new lows
Budrigannews.com – According to a survey conducted by World Economics on Monday, China’s business confidence dropped to its lowest level since January 2013, indicating the impact of rising COVID-19 cases on economic activity and the abrupt removal of numerous pandemic control measures.
The list tumbled to 48.1 in December from 51.8 in November, showed the World Financial aspects’ review of project leads at north of 2,300 organizations directed Dec. 1-16. The record was the most reduced since the study started in 2013.
After the sharp relaxation of strict COVID containment measures on December 7 triggered a still-growing wave of domestic COVID cases across China, the survey results were one of the first indications of how business sentiment has taken a hit in the world’s second-largest economy.
“The review proposes firmly that the development pace of the Chinese economy has eased back emphatically, and might be setting out toward downturn in 2023,” World Financial aspects said.
This year, China’s GDP is expected to grow just 3%, the lowest rate in nearly 50 years.
Sales managers’ indexes in the Manufacturing and Service Sectors both fell below the 50 level in December, according to the survey.
According to the London-based data provider, “the percentage of companies that claim to be currently negatively impacted by COVID has risen to a survey high, with more than half of all respondents now suggesting their operations are being harmed in some way.”
China recently demolished important components of the world’s most stringent COVID lockdowns and restrictions. Despite President Xi Jinping’s support for the measures, they harmed the economy and sparked protests that were unprecedented during his decade in power.
An agenda-setting meeting that ended on Friday stated that the top leaders and policymakers would concentrate on stabilizing the economy in 2023 and intensifying policy adjustments to ensure that key targets are met.
Dan Wang, chief economist at Bank China, stated, “It may take at least another quarter before things turn around.”
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“Numerous independent companies have run out of liquidity, particularly cafés, rec centers, inns and other city administrations.”
