2023-05-31 07:53:18
After the strict “Zero Covid” policy, China’s government is aiming for an economic upswing. But the second largest economy is cooling off for the second quarter in a row.
The economic recovery in China has slowed. Important leading economic indicators were worse than expected in May. The official Purchasing Managers’ Index (PMI) in manufacturing fell for the second straight month, falling from 49.2 to 48.8 points, the Chinese Bureau of Statistics said in Beijing on Wednesday.
A value below the 50-point limit indicates a contraction. The index for the service industry remained in the expansive area, but also fell from 56.4 to 54.5 points, as reported by the statistical office. Both leading indicators were thus below the forecasts of experts.
The reasons for the slowdown in the second largest economy in the second quarter are manifold: Export growth has deteriorated. The recovery of the battered real estate market is weaker. The government has also slowed infrastructure spending. Businesses are suffering from falling profits and rising political tensions with the US and its allies.
After the end of the strict corona policy, the Chinese government is aiming for an economic upswing this year. In the first quarter, economic growth was 4.5 percent compared to the same period last year. The management has set a growth target of “around five percent” for the year as a whole. (dpa)
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