Annual economic growth slowed to 2.9% in Q4 on softer expansions in industry and services, as tighter Covid-19 restrictions in October–November and an explosion of virus cases at the end of the quarter hurt momentum. Moreover, an over 6% year-on-year decline in merchandise exports suggested weakening external demand. More positively, the economy appears to be recovering briskly so far this year, thanks to the removal of restrictions in December and the rapid subsiding of virus cases. Both the manufacturing and the non-manufacturing PMIs surged in January, and mobility data is far higher this year than in the same period in 2022. That said, vehicle sales slumped in January due to the expiration of fiscal benefits. In addition, the housing recovery seems sluggish, with ongoing annual declines in home sales and mortgage loans so far in 2023.
China Wages (ann. var. %) Data
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Wages (ann. var. %) | 10.0 | 10.9 | 9.8 | 7.6 | 9.7 |