Quick Bites | How fast is China recovering?

As we’ve discussed in previous Quick Bites, the rapid re-opening of China post its Covid lockdown is one of the biggest investment stories of the year. But how fast is China recovering from the pandemic period?

One could choose to rely on official data, but in China’s case, that is sometimes of limited value – and so global fund managers have developed alternative methodologies to provide insights into activity levels.

The chart below shows traffic congestion across 100 Chinese cities as a proxy for economic activity. With intra-city mobility at a multi-year highs, this indicates the extent of the 2023 bounce. Suggesting the transportation, restaurant services, and leisure and entertainment sectors appear to be recovering robustly.

Source: Goldman Sachs


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