China’s GDP is expected to grow just 3% this year, its worst performance in nearly half a century. , Photo Credit: Reuters
China’s business confidence fell to its lowest level since at least January 2013 on Monday, a World Economic Survey survey showed. COVID-19 Matters on economic activity and signs of a possible recession next year.
The index fell from 51.8 in November to 48.1 in December, showed World Economics’ survey of sales managers at more than 2,300 companies conducted December 1-16. The index was the lowest since the survey began.
World Economics said, “The survey strongly suggests that the growth rate of the Chinese economy has slowed dramatically, and could slide into recession in 2023.”
The world’s second-largest economy after the United States is facing a surge in COVID-19 infections after a sudden relaxation of strict containment measures, hitting businesses and consumers alike, while a weakening global economy has hit Chinese exports. is harming.
China’s GDP is expected to grow just 3% this year, its worst performance in nearly half a century.
The survey showed that business activity declined sharply in December, with the index of sales managers in the manufacturing and service sectors falling below the 50 level.
The London-based data provider said, “The percentage of companies claiming to be currently negatively affected by COVID has risen to a higher survey, with more than half of respondents now suggesting their operations need to be taken a step further.” or being harmed in some other way.”
China has in recent days dismantled some of the world’s toughest anti-COVID restrictions and key parts of the lockdown, which were put in place by President Xi Jinping but battered the economy and his decade-long rule witnessed unprecedented popular protests.
Top leaders and policymakers will focus on stabilizing the economy in 2023 and advancing policy adjustments to ensure key goals are met, according to an agenda-setting meeting that ended Friday.