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- China’s economy is still months away from a full recovery - survey
China’s economy is still months away from a full recovery - survey
CNBC reports that business leaders said in a survey by the China Beige Book that China has not fully recovered from the shock of the coronavirus pandemic.
Roughly two-thirds of executives polled by the third-party firm said they don’t expect sales, profitability and hiring to return to 2019 levels until at least three months from now.
The survey’s tepid outlook contrasts with generally optimistic forecasts for China, the only major economy in the world expected to grow this year in the wake of the pandemic.
Government commentary in the last few weeks have also signaled concerns about overall economic growth. While economists predict China’s gross domestic product will likely expand about 2% this year, consumers have so far spent less than they did last year as many remain uncertain about future income.
For the fourth quarter, the China Beige Book found sharp drops in sales growth for luxury goods, food and apparel compared to the prior quarter.
“Firms in these sub-sectors noted narrower margins as well as weaker sales volumes and hiring growth,” the report said.
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