President of China, Xi JinpingAFP
Published 04/27/2024 14:23
Chinese industrial profits fell year-on-year in March, reversing a strong gain in the first two months of the year. This is a sign of weakness in the world’s second largest economy.
According to data from the National Bureau of Statistics (NBS) released on Saturday, the 27th, Chinese industrial profits fell 3.5% in March compared to the previous year. In January and February this year, there was an increase of 10.2%.
Official data showed that in the first quarter, industrial profit rose 4.3% compared to the same period in 2023, surpassing the 2.3% drop recorded for the entire year 2023.
Brake in March
China’s economic activity, including industrial production, showed a better-than-expected improvement in the first two months of the year, but soon slowed in March.
Some economists say this result is mainly due to a low base comparison for the first two months in the same period last year, when China experienced a massive Covid infection.
The Chinese economy still faces headwinds as domestic spending is tepid and the housing crisis continues.
According to the statistics office, China’s state-owned industries reported a 2.6% drop in profits in the first quarter, compared with a 0.5% increase in the January-February period.
However, foreign companies increased profits by 18.1% in the first three months, below the 31.2% gain in the first two months.
