After three years of rolling Covid-19 lockdowns and trade disruptions, China posted faster-than-expected GDP growth in the first quarter of 2023, at 4.5% year-on-year (y-o-y), but the uneven nature of its recovery is sending mixed signals for emerging markets.
The strong performance, which exceeded the expectations of many analysts, was powered by 5.4% expansion in the services sector, including a 10.6% spike in retail sales in March, as pent-up demand and high domestic savings drove market activity.
Recovery has not been even across all sectors, however, with China’s industrial sector growing by 3.9% in March, which was still up from 2.4% in January and February.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
