China’s economic recovery from the coronavirus crisis powered ahead in November as crucial indicators of activity rose at their fastest rates this year, reported the Financial Times.
Industrial production increased 7% year on year in November, edging up from 6.9% a month earlier, while retail sales rose 5%. Both metrics expanded more than in any other in 2020, said the FT.
Oxford Economics on Tuesday upgraded its forecast for China’s full-year growth to 2.1%, and expects growth of 8.1% next year. Louis Kuijs, head of Asia economics at the consultancy, anticipated a tightening of policy to weigh on quarter-on-quarter growth next year.
“We expect the macro policy stance to shift from expansionary to contractionary, with the overall government deficit declining and monetary policymakers aiming to contain macro leverage,” he said.