BEIJING, Dec 19 (Portal) – China’s business confidence has fallen to its lowest level since January 2013, a World Economics survey showed on Monday, showing the impact of rising COVID-19 cases on economic activity with the abrupt lifting of many measures to combat the pandemic.
The index fell to 48.1 in December from 51.8 in November, according to World Economics’ survey of sales managers at over 2,300 companies, conducted December 1-16. The index was the lowest since the survey began in 2013.
The survey results were among the first indicators of how business sentiment in the world’s second-largest economy has suffered after the sharp easing of strict COVID containment measures on December 7 sparked a still-growing wave of domestic COVID cases across China .
“The survey strongly suggests that the growth rate of China’s economy has slowed quite dramatically and could be headed for a recession in 2023,” said World Economics.
China’s GDP is expected to grow just 3% this year, its worst performance in nearly half a century.
The survey showed that business activity fell sharply in December, with both manufacturing and services selling managers’ indices slipping below the 50 mark.
“The percentage of businesses claiming to be currently negatively impacted by COVID has risen to a survey high, with more than half of all respondents now saying their operations are being harmed in one way or another,” said the in London resident data providers.
China recently dismantled some key pieces of the world’s toughest anti-COVID curbs and barriers. The measures were endorsed by President Xi Jinping but hurt the economy and sparked popular protests unprecedented in his decades-long rule.
According to an agenda-setting meeting that ended on Friday, top leaders and policymakers will focus on stabilizing the economy in 2023 and stepping up policy adjustments to ensure key goals are met. Continue reading
“It may take at least another quarter for things to change,” said Dan Wang, chief economist at Hang Seng Bank China.
“Many small businesses are running out of cash, particularly restaurants, gyms, hotels and other city services.”
Reporting by Liangping Gao, Ryan Woo and Joe Cash; Edited by Stephen Coates and Christian Schmollinger
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