China's rapid rebound has 'further to run'

The official national accounts show that China's economy rebounded more strongly than expected following the relaxation of the government's zero-Covid policy, says Schroders' David Rees, senior emerging markets economist. In seasonally-adjusted, quarter-on-quarter terms, output expanded by 2.2% in the first quarter of 2023. While that was actually a bit less than the 2.5% increase that we had pencilled in, this was only due to revisions to the historical data. These revisions meant that the economy grew by 0.6% in the fourth quarter of 2022 versus the initial estimate of zero growth. ...