China's economy has a 'steep hill to climb' despite positive export surprise, HSBC says
Publishing timestamp: 2023-12-07 07:30:31
Summary
The Chinese economy has shown a surprise pickup in exports, with a 0.5% year-on-year increase in November. However, imports fell by 0.6% over 12 months. HSBC's Chief Asia Economist Frederic Neumann believes that the Chinese economy still has a "steep hill to climb" and is unlikely to be bolstered by further fiscal stimulus. The positive export figure should be taken with a pinch of salt, as it may be due to inventory adjustment and base effects. Neumann suggests that demand for Chinese goods has fallen, and there is no evidence of a pickup in domestic demand. The article also mentions the decline in China's exports to the European Union and the Association of Southeast Asian Nations. Despite the availability of fiscal levers, the economic growth numbers are not catastrophic enough to warrant further fiscal action. The article concludes that the Chinese economy will likely continue to muddle through in the coming months.
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Keywords: economy, trade, business news, hsbc holdings plc, breaking news: economy, asia economy,