Business Maverick: China’s Economic Recovery Strengthens, Fueled by Export Boom

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China’s recovery gathered pace in November, supported by strong demand from home and abroad, putting the economy further ahead of its peers as the only major one likely to expand this year.

China’s Industrial output rose 7% in November from a year earlier, in line with the median estimate in a Bloomberg survey of economists. Retail sales expanded 5% in the period, as projected. Fixed-asset investment grew 2.6% in the first 11 months of the year from the same period in 2019, also as expectedThe data shows the breadth of the recovery since a contraction in output in the first quarter triggered by the coronavirus pandemic.

in recent months as a return to virus restrictions in many of China’s biggest markets fueled demand for medical equipment and work-from-home electronic deviceson Nov. 11, signaling solid demand. For first 11 months of the year, sales were still down 4.8% compared with the same period in 2019 The profitability of industrial firms has rebounded, although some companies are struggling under large debt loads. A series of recent

by state-owned enterprises roiled local debt markets and is making it harder for some to borrow moneyshowed China’s economic recovery stabilizing toward the end of the year. Growth is set to reach 5.9% in the current quarter and 2% for the full year, according to economists surveyed by Bloomberg Assuming that Covid-19 is kept under control, China’s rebound should continue through the final quarter, sustained by “the continued recovery of consumption, robust infrastructure investment, resilient property activities, and strong exports,” UBS Group AG economists led by Ning Zhang wrote in a report before the data releaseInvestment continues to be fueled by state-owned businesses, which grew 5.6% in the January-November period from a year ago.

 

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