The Chinese economy is still not picking up speed after the Corona slump. According to government data on Thursday, Chinese industrial production rose by 3.5 percent in May, as expected by economists. However, growth weakened compared to the previous month. The 12.7 percent increase in retail sales was also lower than in April and missed what experts had expected. Overall, the increases appear significant at first glance, but a year ago the government’s strict corona measures weighed heavily on the economy.
The data underpins recent major concerns about China’s economy, which is only slowly emerging from the corona low. The impression is reinforced by the continuing weakness of the Chinese real estate market, which has grown far too quickly over the years. Experts speak of a bubble. In the market, investments fell by 7.2 percent from the beginning of the year up to and including May, and thus more than expected. The country’s central bank is therefore trying to stimulate the economy with a loose monetary policy. (dpa)