China's reopening after 3 years of Zero Covid policies was a hot topic for the last couple of months. The data shows that China grew beyond expectations, economists expected China to have grown by 4%. Data showed that China had a strong recovery, growing by 4.5%, much better than last year's 3%.
Much of this growth was caused by domestic consumer spending, also backed by government spending and firms' investments. However, economists do not expect this growth to have an impact as it did after 2008, as domestic factors played a much larger role and the expansion in industrial manufacturing fell behind expectations at 3.9%.
This decrease in manufacturing and the growth fueled by domestic spending might mean that China will fall behind expectations for the next quarter.
Source: Reuters
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