China consumer market recovery strong in January

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China consumer market recovery strong in January

BEIJING China's consumer market recovery was strong in January, according to the commerce ministry on Thursday, in one of its first optimistic assessments of consumption, which until this year had been reined in by a weak economy and tough COVID 19 policies.

The country's exports stagnate due to weak global demand and the ailing property market struggles to get back on its feet, so it's critical for an economic recovery this year.

China's 3 per cent economic growth rate last year was one of its weakest rates in nearly half a century, because of the harsh COVID-19 curbs that were abruptly lifted in December.

The momentum of recovery in China's consumer market was relatively strong from January, according to the ministry's spokesperson Shu Jueting, who said the government will take more measures to revive and expand consumption.

In January the world's second-biggest economy showed signs of a rebound with rises in factory and services activities, and ratings agency Fitch raised its forecast for China's economic growth.

A recovery in China's economy looks certain this year, but the nature and speed of that recovery remains in doubt, Iris Pang, Chief Economist at ING, said in a research note on Thursday.