April, 15 2016 by lsr team

Chinese growth rebounded on stimulus

LSR Blog - Chinese growth rebounded on stimulus

Investor sentiment has started to perk up recently on the back of a series of strong data. With exports popping almost 20% year on year in March, heavily distorted by the Chinese New Year, a local journalist has asked if a U-shaped recovery in the economy was on the cards. Unfortunately, we are just at the beginning of yet another mini-cycle of the sort we have been through over the past couple of years.

On our preliminary estimate, Chinese GDP expanded 7.1% at an annualised rate in Q1. That is up from 5.5% in Q4 and is the fastest pace in almost two years. What is the main explanation of the strength of domestic demand in China and is this growth sustainable? Click below to find out.