Chinese entrepreneurs and bankers have shown increased confidence in the country’s macroeconomic outlook in the first quarter of this year, according to a survey released by the People’s Bank of China on Monday. The survey found that the entrepreneurs’ macroeconomy heat index rose by 10.3 percentage points from the previous quarter to 33.8 percent in Q1. Around 64.6 percent of the 5,000 surveyed entrepreneurs felt that the macroeconomy was functioning normally during the period.
In a separate survey of bankers, the central bank found that the macroeconomy heat index stood at 40.2 percent in Q1, up 22.8 percentage points from the previous quarter. Similarly, 62.8 percent of surveyed bankers reported that the macroeconomy was operating normally. Looking ahead to the second quarter, the bankers’ outlook index for macroeconomy heat rose by 10.7 percentage points to 50.9 percent.
The surveys also revealed a rise in aggregate loan demand during Q1, with the index up by 19 percentage points from the previous quarter to 78.4 percent. The results of the surveys demonstrate that Chinese entrepreneurs and bankers are optimistic about the prospects for the country’s economy, which has shown impressive resilience in the face of the ongoing Covid-19 pandemic.
China’s successful containment of the virus has allowed its economy to recover more quickly than many other major economies, and recent data points to a robust rebound in consumption and exports. However, concerns remain over the country’s high debt levels, potential asset bubbles, and geopolitical risks. Nevertheless, the central bank’s surveys indicate that confidence in the macroeconomic outlook is growing among key stakeholders in the Chinese economy.