Published: 2023-01-31 14:20
Last Updated: 2023-03-25 08:00
Chinese factory output increased in January, the first increase after four months of a zero-COVID policy that was recently lifted, official data shows.
China had registered three percent growth over the past year, and the manufacturer purchasing managers’ index has been below 50 points since last September, indicating that factory output was falling.
However, the index rose from 47.0 points in December to 50.1 points in January, indicating that factory output is rising again.
Pandemic-related restrictions have “entered a new stage” to allow “a gradual return” to normal life, National Bureau of Statistics official Zhao Qinghe said in a statement, according to AFP.
Chinese authorities believe that the coronavirus outbreak has passed its peak, just as the country enters its new years celebrations.
In addition to the pandemic, a crisis in the real estate sector was dragging down the Chinese economy.
The country’s recovery is predicted to benefit the world economy as a whole.
The IMF has upgraded its forecast for the world economy in 2023, citing both the reopening in China and lower energy costs in Europe.
China will be an “engine” that benefits other countries, said IMF chief economist Pierre-Olivier Gourinchas, according to the Financial Times.
Also Read: IMF lifts 2023 growth forecast with boost from China reopening