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Why didn’t Chinese economy recover after the pandemic?
China’s economy missed the expectation of recovery following the impact of the COVID-19 pandemic.
The COVID-19 pandemic sent shockwaves throughout the global economy, and China, as the initial epicenter, experienced significant disruptions. While China’s economy showed signs of recovery in the aftermath of the pandemic, the complexities have influenced its post-pandemic economic trajectory.
The Chinese economy grew by only 3% in 2022, much less than in 2021 and short of Beijing’s target of 5.5%. In the decade before the pandemic, China’s economy was one of the world’s most dynamic, growing an average of 7.7% a year. In 2023, China’s economy stumbled with industrial output and retail sales growth missing forecasts in May 2023.
Several factors, both domestic and global in nature, have contributed to the perceived challenges in China’s economic rebound.
Ongoing global economic challenges
While China has made significant efforts to rebound from the pandemic, it is still subject to the broader global economic environment. If there are global economic slowdowns or other challenges, it can affect China’s recovery trajectory.
