The Chinese economy, after enduring a period of economic turbulence characterized by decelerating retail spending growth, falling real estate prices, and a slump in industrial productivity, appears to be showing signs of recovery. This comes on the heels of stimulus measures initiated by China’s central bank, including an unexpected interest rate cut and reduction in banks’ reserve requirements to encourage lending.
Despite a slow start to the year with retail growth crawling at a mere 2.5% in July, official data indicates a rebound in August, with retail sales growth bouncing back to 4.6%, significantly above the anticipated 3%. Similarly, industrial productivity increased by 4.5%, up from July’s slower pace of 3.7%. Consumer prices also rebounded last month following alarming deflation in July.
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