Breaking Down China’s Economy

The video discusses the interpretation of recent PMI data, highlighting a 1.3 point increase in March, which is attributed to both seasonal factors and broad-based growth in components like new orders and exports. The first quarter GDP is expected to grow at 6.4% sequentially, though year-on-year growth remains lower. Policymakers are monitoring macroeconomic data before deciding on further stimulus, with fiscal policy expected to lead growth support. The fiscal deficit is projected to rise, with tax cuts and infrastructure support as key measures.

What is one of the key components that contributed to the broad-based increase in the PMI in March?

• Decrease in export orders

• Decline in output

• Increase in new orders

• Reduction in inventory

How did infrastructure investment perform in the first quarter compared to expectations?

• It was not measured

• It exceeded expectations

• It matched expectations

• It was weaker than expected

What was the expected GDP growth on a sequential basis for the first quarter?

• 7.4%

• 6.4%

• 5.4%

• 8.4%

What is the anticipated change in the fiscal deficit as a percentage of GDP for this year?

• From 9.8% to 10.5%

• From 10.5% to 9.8%

• From 11.5% to 10.8%

• From 10.8% to 11.5%

Which fiscal measure is expected to be implemented from April?

• Increase in household taxes

• Increase in VAT

• Reduction in Social Security contributions

• VAT tax cut