Never before has such a high growth rate been recorded in China as in the first quarter of this year. The economy grew by 18.3 percent on an annual basis, according to Chinese government figures.
Yet this record growth is disappointing analysts. That the figure would be high was already expected. Last year China was struggling with the coronacrisis and parts of the country were in a lockdown.
Now restaurants and shops are reopening and consumers are picking up their old spending patterns. Restaurants were 76 percent more spent, stores 34 percent more. Trade with foreign countries also increased again.
Compared to the last quarter of 2020, the economy grew by 0.6 percent. Thats the second-lowest growth in the last decade. “Chinas recovery after corona weakens,” writes an economist from analyst company Capital Economics.
ING economists also say that the record figure does not tell the whole story. “The big risk for the coming quarters is the chip shortages. These can affect production and thus export growth.” They point out that Chinas industrial production has increased by 14%. A limited increase compared to the massive growth in other sectors.
ING economists expect a growth of 8.6% in the Chinese economy throughout the year. Last year, despite corona, the economy grew by 2.3 percent.