Big data changes life

 This issue provides an overview of the macroeconomic trends in Q3 2023, some policy updates and hot topic analysis.

  Economic activity bounced back in Q1 2023 with the removal of mobility restrictions and a surge  in spending on services, but growth momentum has slowed since April. GDP expanded by 4.5  percent y/y in the first quarter of 2023, up from 3 percent y/y in 2022. The recovery in the first  quarter was spurred by the release of pent-up consumer demand, some improvement in housing  sector activity, and policy support. However, growth momentum has slowed since April, indicating that China’s recovery remains fragile and dependent on policy support.

  China's GDP increased by 6.3% in Q2 2023, but the quarter-on-quarter growth was 0.8%, shy of market expectation.

  • China’s GDP grew 5.5% year-over-year (yoy) in 2023 H1, posting a steady economic rebound. In Q2, the economy rose by  6.3%, up from 4.5% in Q1, largely thanks to a low base. On a quarter-on-quarter basis, China’s GDP plummeted to 0.8% in Q2  from 2.2% in Q1, showing a slowdown in the domestic economic recovery.  • With Covid-19 restrictions lifted, retail sales saw a solid recovery in H1 2023, and the contribution of consumption to economic  growth continues to expand. Consumer sentiment improved modestly and the share of households indicating higher savings  dropped slightly (but remains high).   • Manufacturing and infrastructure investments held up relatively well, growing 6.0% and 10.7% in H1 2023, respectively.  However, momentum has weakened somewhat recently. Looking ahead, investment in high-end manufacturing and the  upgrading of equipment will likely continue to see robust growth.   • The property market recovery has slowed down since April, the growth rate of key indicat