China's economy has bounced back after last year's deep coronavirus slump, propelled by stronger demand at home and abroad and continued government support for smaller firms.Manufacturing and consumer activity has returned to pre-coronavirus levelsBut the brisk expansion, heavily skewed by the plunge in activity a year earlier, is expected to moderate later this year as the government turns its attention to reining in financial risks in overheating parts of the economy.
"The upshot is that with the economy already above its pre-virus trend and policy support being withdrawn, China's post-COVID rebound is levelling off," said Julian Evans-Pritchard, senior China economist at Capital Economics. Retail sales increased 34.2 per cent year-on-year in March, beating a 28 per cent gain expected by analysts and stronger than the 33.8 per cent jump seen in the first two months of the year.
Data last week showed consumer prices rising at only a modest pace in March, even as factory gate inflation hit a near three-year high.