The media, citing analysts, claim that China’s economic system probably demonstrated stability in the first two months of the current year, even though the President of the United States Donald Trump began a second trade war between Washington and Beijing almost immediately after returning to power in January.
The data that will be released next week is likely to show that retail sales in the Asian country increased. This opinion is shared by experts with whom media representatives have spoken. Industrial production, according to preliminary expectations, decreased slightly during the period when the factories were closed for the Lunar New Year break.
A kind of indication that China’s economic system, which is currently the second-largest in the world, intends to actively counter the side effects of the trade war, is that the Asian country’s authorities this month set a record budget deficit target and an annual gross domestic product (GDP) growth goal at about 5% for 2025. At the same time, achieving the results Beijing wants will clearly not be an easy task. Washington’s tightening tariff policy is guaranteed to hurt China’s export activities, which were one of the main driving forces of the Asian country’s economic growth last year. External shipments accounted for almost a third of China’s GDP growth in 2024.
Citigroup Inc. economists including Xiangrong Yu said in a report last week they expect steady readings for major activity indicators for the first two months this year.
Experts interviewed by the media suggest industrial production in China grew by 5.3% in the first two months of 2025. Retail sales, in their opinion, increased by 3.8% over the mentioned period. They also forecast fixed-asset investment to grow by 3.2% in the first two months 2025.
As we have reported earlier, China Seeks to Boost Consumption.
