OPINION
Market Rating Before FOMC MeetingJan 31
China’s Growth in Q1 has exceeded the forecasts
International markets are in a relatively positive mood thanks to the data released in the world's second largest economy in the new week, in which many markets are closed due to the Easter holiday.
According to data released by the National Statistics Office of China (NBS) at 04:00 today, the country's gross domestic product (GDP) growth rate increased by 1.3 percent in the first quarter of 2022 compared to the previous quarter. GDP also expanded by 4.8 percent year-over-year. During this period, market forecasts were that GDP would grow at a quarterly rate of 0.6 percent and an annual rate of 4.4 percent.
According to NBS; on an annual basis, industrial production grew by 5.0 percent and fixed capital investment by 9.3 percent in the first quarter, while retail sales contracted by 3.5 percent. Final consumption accounted for 69.4 percent of GDP growth in the first quarter during this period, the unemployment rate stood at 5.8 percent.
Evaluation by the NBS indicated that the rising unemployment rate in March reflected the challenges faced by businesses and increased employment pressure, but the labor market was largely stable. And there were still positive factors for the economic outlook despite the short-term downside risks. It is expected that the Chinese economy will continue its recovery trend this year, the NBS noted, ndding that consumer price increases may be moderate.
Following the data, the region's VXJ, an indicator of investor stress, retreated to 22.57 points, while a relative recovery in stock market indices is observed with purchases flowing towards the European session. However, this optimism may not last long in the current market conditions as the members of the Federal Reserve frequently say that there may be faster interest rate increases in the face of rising inflationary pressures.
According to data released by the National Statistics Office of China (NBS) at 04:00 today, the country's gross domestic product (GDP) growth rate increased by 1.3 percent in the first quarter of 2022 compared to the previous quarter. GDP also expanded by 4.8 percent year-over-year. During this period, market forecasts were that GDP would grow at a quarterly rate of 0.6 percent and an annual rate of 4.4 percent.
According to NBS; on an annual basis, industrial production grew by 5.0 percent and fixed capital investment by 9.3 percent in the first quarter, while retail sales contracted by 3.5 percent. Final consumption accounted for 69.4 percent of GDP growth in the first quarter during this period, the unemployment rate stood at 5.8 percent.
Evaluation by the NBS indicated that the rising unemployment rate in March reflected the challenges faced by businesses and increased employment pressure, but the labor market was largely stable. And there were still positive factors for the economic outlook despite the short-term downside risks. It is expected that the Chinese economy will continue its recovery trend this year, the NBS noted, ndding that consumer price increases may be moderate.
Following the data, the region's VXJ, an indicator of investor stress, retreated to 22.57 points, while a relative recovery in stock market indices is observed with purchases flowing towards the European session. However, this optimism may not last long in the current market conditions as the members of the Federal Reserve frequently say that there may be faster interest rate increases in the face of rising inflationary pressures.
