News analysis

Can domestic consumption drive growth in China?

Analysts and economists remain cautiously optimistic that such growth can continue. PHOTO: EPA-EFE
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China's economy steamed to a solid ending last year, beating most estimates to end its final quarter with 6.5 per cent growth.

In spite of the low full-year figure - the economy grew only 2.3 per cent last year, the lowest in four decades - it is still the only major economy in the world that avoided a contraction last year amid the Covid-19 pandemic, with analysts and economists cautiously optimistic that such growth can continue.

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A version of this article appeared in the print edition of The Straits Times on January 19, 2021, with the headline Can domestic consumption drive growth in China?. Subscribe