Although the retail sales data announced in China indicated a recovery in the economy, the industrial production data was disappointing.

Although the Chinese economy recovered in the first two months of 2023 following the lifting of the Covid restrictions, the failure of industrial production to meet expectations showed that the recovery could have been more stable.

Retail sales in the country increased by 3.5 percent in the January-February period compared to the same period of the previous year, in line with expectations. Retail sales fell 1.8 percent in December.

On the other hand, industrial production increased by 2.4 percent annually in the same period, below the expectations of 2.6 percent. The unemployment rate was 5.6 percent, exceeding the expectation of 5.3 percent. Fixed asset investments, estimated to have increased by 4.5 percent, showed a strong picture with an increase of 5.5 percent.