This emerged from a statement released over the weekend by the national statistics agency. Analysts had expected a drop to just 47.8 points. For service providers, the value decreased by 5.1 points to 41.6 points. Economists had expected 45.0 points here.
The background to the development is probably fear of the possible consequences of the Chinese government’s new corona policy. This, unlike nearly all other countries, had recently been reversed after initially not relaxing its strict zero Covid policy. But the number of infections in the country is now increasing rapidly.
Against this background, Chinese President Xi Jinping urged his compatriots to persevere. The pandemic has entered a “new phase”. But the state and party leader said in his New Year’s speech on Saturday that perseverance and solidarity will ultimately lead to victory.
The reversal in corona policy was justified by the fact that infections with the new Omicron variants are no longer so difficult. But experts see the reason, first of all, in the fact that strict measures can no longer be maintained due to explosive spread. Strict restrictions also placed an increasing burden on the second largest economy.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
