19 December 2022 | Macroeconomics

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.

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