19 December 2022 | Other

Chinese business confidence dropped to its lowest level in a decade

A World Economics survey shows the influence of the rising number of COVID-19 cases on economic activity. According to its results, China's business confidence indicator fell to its lowest level since January 2013.

Surveying sales managers from more than 2,300 companies, the figure was 51.8 in November, and it dropped to 48.1 in December. Similar surveys have been conducted since 2013. This time the figure was the lowest since the first survey started.

The new wave of infections across China was the consequence of a dramatic weakening of COVID containment measures. The survey results were one of the first indicators of negative business conditions.

The World Economics report said that the Chinese economy is slowing down quite sharply, according to the survey results.

This year, GDP growth in China is expected to be 3%, which is the worst figure in almost 50 years.

Stabilizing the economy in 2023 will be a major focus for China's top leaders. Also, politicians will activate the correction of measures against COVID to provide conditions for achieving key GDP growth targets.

Company MarketCheese
Period: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 63
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 50
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 52
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 31
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 66
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 67
Go to forecasts