growth

Slower China factory activity growth challenges economic recovery prospects

Slower China factory activity growth challenges economic recovery prospects
  • Manufacturing PMI 51.9 in March vs 52.6 in Feb
  • Non-manufacturing PMI expands at fastest pace in nearly 12 years

BEIJING, March 31 (Reuters) – China’s manufacturing activity expanded at a slower pace in March, official data showed on Friday, raising doubts about the strength of a post-COVID factory recovery amid weaker global demand and a property market downturn.

The services sector was stronger, with activity expanding at the fastest pace in nearly 12 years after the end of China’s zero-COVID policy in December boosted transportation, accommodation and construction.

The official manufacturing purchasing managers’ index (PMI) stood at 51.9, against 52.6 in February, according to data from the National Bureau of Statistics (NBS), above the 50-point mark that separates expansion and contraction in activity on a monthly basis.

That slightly exceeded expectations of 51.5 tipped by economists in a Reuters poll, and led to the yuan strengthening against the dollar. The

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March 31, 2023 by Economics

World Bank expects slow global economic growth

World Bank expects slow global economic growth
Illustration of a running track resembling Earth with shapes of continents printed on the rubber

Illustration: Annelise Capossela/Axios

The global economy is facing an era of worsening demographics, ongoing inflation pressure and financial instability, according to a gloomy new report from The World Bank.

Why it matters: If the economy is like a car, its potential growth rate is how quickly it can go without risking a ticket — or excess inflation. The World Bank says this “speed limit” has fallen dramatically, warning that forces juicing global economic growth are now in retreat.

  • A nation’s potential growth rate sets boundaries that can affect a slew of policies, including government spending and benchmark interest rates.

What they’re saying: “The result could be a lost decade in the making—not just for some countries or regions as has occurred in the past—but for the whole world,” bank officials wrote in the report.

By the numbers: The World Bank estimates that the globe’s potential growth rate will average 2.2%

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March 28, 2023 by Economics

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