After three years of stringent lockdowns and travel restrictions, China’s economy began to rebound in January 2023 following the country’s decision to abandon its zero-COVID policy.

The government’s abrupt reopening, which took place in December 2022, led to a surge in domestic consumption and an uptick in manufacturing activity.

According to the National Bureau of Statistics, retail sales climbed 6.3% year-on-year, signaling strong consumer confidence. Meanwhile, industrial production grew by 4.1%.

The International Monetary Fund (IMF) projected that China’s GDP would grow by 5.2% in 2023, following a modest 3.0% expansion in 2022.

Despite these positive signs, economists warned that the country still faced significant challenges, including a sluggish property sector, high youth unemployment, and a slowing global economy.

Additionally, the re-opening sparked concerns over a potential wave of COVID-19 infections, which could derail the recovery.