It is mainly catch-up effects that are driving Chinese growth.
(Photo: imago images/VCG)
Beijing After the end of the strict zero-Covid policy, the Chinese economy grew faster than economists had expected. In the first quarter of 2023, the gross domestic product of the People’s Republic rose by 4.5 percent compared to the previous year. Analysts had only expected an increase of four percent. Growth was driven by consumption and exports.
With Europe and the US teetering on the brink of recession, economists are even raising their growth expectations for China. “We will see another significant improvement in the next few quarters due to the base effects compared to the weak 2022,” says Max Zenglein, chief economist at the think tank Merics.
The strong recovery in China means some relief for the global economy. According to calculations by the International Monetary Fund (IMF), half of global growth in 2023 will come from China and India. The German economy, which is heavily dependent on foreign trade, could particularly benefit from this, says Holger Görg from the Kiel Institute for the World Economy (IfW).
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