Profits at China’s industrial firms grew for the eighth straight month in December, suggesting a sustained recovery as the manufacturing sector rapidly emerged from its COVID-19 slump, reported Reuters.
Profits surged 20.1% year-on-year in December to RMB 707.11 billion ($109.40 billion), after rising 15.5% in November, National Bureau of Statistics (NBS) data showed on Wednesday.
Economists polled by Reuters expect China’s GDP to rise 8.4% in 2021, the fastest pace in a decade. However, some analysts cautioned that a slower recovery in consumption and a potential rapid slowdown in credit growth could be risks for the Asian powerhouse.
For the full year of 2020, annual profits for China’s industrial firms grew 4.1% year-on-year to RMB 6.45 trillion, recovering from a 3.3% on-year decline seen in 2019. It was also quicker than a 2.4% gain seen in January-November.