CHIR - China Begins Year Of The Dragon With Weak Economic Momentum

2024-02-07 07:08:00 ET

Summary

• The Chinese economy is stabilising, but the only fireworks will come from the new year celebrations, which begin on February 11, as momentum remains weak.
• China’s GDP growth for the fourth quarter rose from 4.9% year-on-year to 5.2%, bringing 2023 full-year growth to 5.2% YoY, exceeding the 5% growth target set at last year’s Two Sessions.
• The January manufacturing PMI came in at 49.2, and that was slightly below expectations.

By Lynn Song

Mission accomplished on 2023 GDP as growth stabilises

You could say it's 'mission accomplished' as data over the past month confirms that the Chinese economy beat its 2023 GDP growth target and growth certainly stabilised. But as people celebrate the Chinese New Year, sentiment seems weak. Key activity data won't be published this month, so expect a period of calm before the much-anticipated annual parliamentary gathering, the Two Sessions, in early March....

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