China's Retail Sales Surge Amidst Economic Challenges

China's retail sales growth accelerated in January-February, reflecting efforts to boost domestic consumption amid rising joblessness and easing factory output. Policymakers are focusing on enhancing domestic demand to counter U.S. tariff pressures. Despite fiscal support, challenges like tepid household demand and a property crisis loom large for sustained recovery.

In a positive signal for domestic consumption, China's retail sales growth accelerated in the January-February period, providing a glimmer of hope for policymakers amid rising joblessness and waning factory output. The government is prioritizing boosting internal demand to combat the economic challenges posed by continuing U.S. tariff pressures.

China's leaders have set an economic growth target of 'around 5%' for 2025. However, the path to achieving this appears steep given the pressures on exports, sluggish household demand, and ongoing property sector struggles. Recent data underlined the need for robust policy supports to drive a sustainable economic rebound.

Economists caution that the effects of higher U.S. tariffs on Chinese exports could become increasingly evident, potentially slowing trade growth. While Beijing has retained its monetary policy stance, deliberations on further fiscal measures continue as policymakers navigate economic uncertainties.

(With inputs from agencies.)