Skip to main content

Rebound levelling off as tighter policy starts to bite

Our China Activity Proxy (CAP) shows a surge in year-on-year growth at the start of 2021. But the picture is more mixed after accounting for favourable base effects. Buoyant foreign demand boosted industry but travel restrictions held back services activity and policy tightening weighed on construction. All told, the data suggest that with the economy now well above trend, activity is levelling off.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.