The labor market and exports lost momentum
China's service providers are feeling the second corona wave and are growing slower than they have been in nine months. The Caixin / Markit barometer for the service industry fell significantly in January by 4.3 to 52.0 points, according to data from Tuesday. The index, which shows the business activities of the service providers, is still above the growth threshold of 50 points. The job creation lost momentum noticeably. Export orders grew more slowly than before.
The recovery in the industry is continuing, albeit much more slowly, said Caixin expert Wang Zhe. “Some of the companies surveyed said the services market is continuing to recover, while many stressed that the market has been affected by the resurgence of the Covid-19 pandemic.”
Because of the corona crisis, the Chinese economy grew more slowly in 2020 than it had in over four decades. The gross domestic product (GDP) increased by 2.3 percent compared to the previous year. This is the worst performance since 1976, which is due to the historical slump at the beginning of the year as a result of the Corona outbreak. In 2019 it was still enough for an increase of around six percent.
