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China’s economic recovery gained pace in March

The activity in China’s manufacturing sector expanded at the fastest pace in March and factories accelerated production after a brief pause during the Lunar New Year holidays, helped by improving global demand that further boosted economic recovery.

China’s Manufacturing Purchasing Manager’s Index rose to 51.9 in March, the highest since December, from 50.6 in February and above forecasted 51.0, with the index holding above the 50 threshold which separates growth from contraction, for the thirteenth consecutive month.

A separate reports showed that China’s services sector picked up significantly (56.3 in Mar from 51.4 in Feb) while composite index which reflects the overall situation in the economy, jumped from 51.6 in Feb to 55.3 in March and the activity in construction sector rose to 62.3 in March from 54.7 in February, due to improved weather conditions.

The latest data show growth bounced back strongly this month after being hit by virus disruptions earlier, as Chinese authorities successfully curbed the domestic transmission of the virus during the winter.

China managed to bring the pandemic under control much before the most of world countries by imposing strict measures and lockdowns in the early phase of the outbreak that helped the economy to rebound quickly from a slump at the start of 2020.

China’s economy was the only from majors to post growth in 2020 with an expansion of 2.3%, although the figure marks the weakest annual growth pace in over 40 years.