The main statistical agency of China has published data on the production growth rate. For the first two months of the coming year, the figure has fallen to a 17-year low and amounted to 5.3%. In December, the growth rate of the production was equal to 5.7%.
According to analysts expectations, the growth rate should have been reduced not so dramatically. A figure of 5.6% was predicted. From 1990 to 2019, the average growth rate was 12%.
The main statistical agency takes into consideration the figures for the first two months. This is done in order to ignore the volatility caused by the holidays. Excluding the New Year, the growth rate for January-February would have been 6.1%.
The slowdown in the energy sector has totaled 2.8%, in the mining industry – 3.3%. The processing industry has shown an increase of 5.6%.
The largest growth is recorded in the ferrous metallurgy (7.5%), as well as in the production of electrical and transport equipment – 8 and 7.9%, respectively.
There also has been an increase in unemployment. It has reached 5.3% – its maximum value in two years. For comparison, the same indicator in December was 4.9%.
Compared with January-February last year, retail trade has grown by 8.2%. In December, the figure was 9%. Investment in fixed assets has increased to 6.1%. In December, it was equal to 5.9%. This dynamic has completely coincided with the forecasts.
Real estate investments have increased by 11.6% on an annual basis. This has not happened since the end of 2014.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade