MNI DATA IMPACT: China's Economy Recovers; GDP +2.3% Y/Y

The Chinese economy, impacted heavily by the COVID-19 pandemic, registered 2.3% y/y growth in 2020, with Q4 GDP improving to 6.5% y/y as both industrial output and fixed-asset investment peaked, according to data released by the National Bureau of Statistics on Monday.

Here are some of the data highlights:

• Industrial production grew for the ninth month by 7.3% y/y in December, edging up 0.3 percentage points from the gain in November and outperforming the 6.9% forecast. Accumulated growth for the year was 2.8% y/y, further accelerating from the previous 2.3%.
• Retail sales rose 4.6% y/y in December, slowing from the previous year-peak of 5.0% y/y growth. This is lower than the 5.5% projected result. Retail sales reported a 3.9% y/y fall for the year 2020 due the huge pandemic impact.
• Fixed-asset Investment registered growth of 2.9% y/y in the Jan-Dec period, improving from Jan-Nov's 2.6% y/y increase.
• Manufacturing investment caught up in December and smoothed the decline to 2.2% y/y after dropping 3.5% y/y in Jan-Nov period. Infrastructure investment rose 0.9% y/y, down from the 1.0% y/y gain, and property investment growth expanded to 7.0% y/y, growing for the seventh month from the previous 6.8%.
• The registered urban unemployment rate read at 5.2% in December, the same as for November. The rate in 31 major cities was also down 0.1 pp to 5.1%.
• The economy experienced a stable recovery over 2020 and with employment stabilized and people's livelihoods protected the thirteenth "five-year" was well achieved. The foundation for a sound economy recovery, however, is still not solid due to the possible rebound of the pandemic and complexity and uncertainties in the external environment. China will maintain its macro policies to make sure the economy running at a reasonable rate to guarantee a good start for the fourteenth "five-year" plan, the Bureau said.