Falling Chinese retail sales fuel concern for global recovery from Covid-19
China has managed to bring its COVID-19 cases under control and is looking to restart its economy as well. However, this process may not be as smooth as the country once predicted.
As China gains control over its COVID-19 cases, it is attempting to restart its economy and recover from the economic downturn caused by the pandemic. However, with initial figures showing slumps in retail sales and industrial production, experts are skeptical if economies have the power to bounce back just yet.
China Emerges From the Pandemic and Restarts its Economy
The economic impact of the COVID-19 pandemic has been apparent worldwide. In the beginning, there was much uncertainty surrounding its full impact since many economies had been forcibly stalled because of government restrictions implemented to curb the spread of the virus. However, as China reports that it has almost eradicated the virus with just 402 reportedly active cases as of September 23rd, countries are looking at China to see if it can successfully emerge from the grasps of the pandemic and reignite its economy while the rest of the world heads into the second phase of the lockdown.
However, this success may not happen any time soon, with data from the summer depicting a gloomy outlook for the restoration of China’s economy. In fact, China’s retail sales in July dropped by 1.1% compared to sales from the previous year, while industrial production has slowed down as well. It was predicted that retail sales would show a small increase in spending, but the data has shown the opposite, fueling concerns over the feasibility of a quick recovery from the impact of COVID-19 in China and worldwide.
Latest Figures Show Promising Glimpse of Recovery
Fortunately, more recent figures have shown a small increase in retail sales in China, hinting that the chance of an economic recovery is not completely lost. Data from August shows a 0.5% increase in retail sales in comparison to August 2019. While this is good news for the possibility of an economic recovery, the country is still facing a sharp increase in unemployment, which will also influence its recovery process, demonstrating the complex nature of “bouncing back” from the pandemic.
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