European equities kicked off the new week in a hesitant fashion after Chinese government officials set a 5% economic growth target for 2023 over the weekend, at the start of the annual session of the National People's Congress., a significant export market for European companies, grew just 3% last year, one of the slowest rates of growth in almost half a century as the economy was hamstrung by severe COVID-19 restrictions.
However, recent data showed that Chinese business activity rebounded sharply in February after the relaxing of the anti-COVID restrictions, and expectations were for a more substantial 2023 growth target.figure for the Eurozone. This is expected to show growth of 1.0% on the month, a recovery from the fall of 2.7% the prior month.
This still represents an annual fall of 1.8%, a minor improvement from the 2.8% year-on-year drop in December, as high prices impact discretionary spending by consumers.
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