{"id":11683,"date":"2023-02-05T07:30:52","date_gmt":"2023-02-05T07:30:52","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=11683"},"modified":"2023-02-05T09:46:33","modified_gmt":"2023-02-05T09:46:33","slug":"how-much-will-chinas-consumer-market-recover-in-2023","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-much-will-chinas-consumer-market-recover-in-2023\/","title":{"rendered":"How much will China’s consumer market recover in 2023?"},"content":{"rendered":"

China\u2019s scrapping of zero covid and reopening to the world is widely regarded as the most important economic story playing out in 2023. And so far, it is living up to expectations, writes Tom Simpson<\/strong><\/h2>\n

With restrictions removed, wave one saw covid spread at an unprecedented speed and scale, with 80% of the population estimated to have been infected with the virus. China\u2019s healthcare system<\/a> was pushed to new limits with death rates rising through December and early January. However, as Spring Festival approached, official figures indicated hospitalisation rates dropped by 85%, with fears of a second wave of infection triggered by holiday travel ultimately unfounded.<\/p>\n

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Despite tragedy hitting many families across the country, normality has nevertheless largely returned to life across China. The initial sense of relief at re-opening and fear of the implications of Covid\u2019s unrestricted spread soon turned into a desire to reconnect with family and friends, travel, shop, eat and drink and try to put the last twelve months to the side.<\/p>\n

Much of China\u2019s initial rebound in activity was inevitability going to be visible in sectors artificially depressed by restrictions. However, the sharpness of the rebound in travel, leisure and consumption more generally during Spring Festival has exceeded even the most upbeat expectations.<\/p>\n

Domestic air travel over Spring Festival was up 50.9% on 2021 though still significantly (47%) lower than 2019 trip volumes according to the Ministry of Transport. Overall, 226 million trips by road, rail, waterway and air were recorded during the week-long national holiday. Meanwhile, revenues in the tourism and hospitality sector over the seven-day period recovered to 80.7% of pre-pandemic levels.<\/p>\n