Chinese Economy on a Steady Course Amid Real Estate Slump

China's economy is showing improvement with retail sales and industrial production rising early in the year, despite a struggling housing market. The government acknowledges ongoing challenges, including tariffs from the US, but remains cautiously optimistic about economic recovery.

The Chinese economy is displaying signs of recovery, with positive developments reported in the first two months of the year, despite a weak housing market posing challenges. Official data released Monday highlighted a 4% increase in retail sales and a 5.9% rise in industrial production from the previous year, propelling Asian stock markets upwards.

According to the National Bureau of Statistics, while the economy is moving in the right direction, domestic and international challenges persist. With the US imposing a 20% tariff on Chinese goods, concerns loom over the economy's heavy reliance on exports.

The ongoing real estate crisis exerts pressure on consumer spending and confidence, as real estate investment dropped 9.8%. Despite the slowdown in price declines, experts like ING bank's Lynn Song warn that recovery in real estate prices will be gradual, urging continual policy support.

(With inputs from agencies.)