China Economic Panel (CEP) by ZEW and Fudan University (Shanghai) - Economic Expectations for China Show Signs of Improvement

After four consecutive drops, the CEP Indicator of Economic Sentiment for China slightly improved by 2.8 points in its current survey period (April 14 to May 7, 2014), reaching a new value of 10.5 points. The CEP Indicator captures the expectations of financial market experts regarding the economic development in China over the course of the next twelve months.

An increasing proportion of the experts participating in the survey expect further growth of domestic consumption in China, while expectations on the development of Chinese exports is assessed less optimistic compared to the previous month. Notwithstanding some signs of stabilization in price expectations in major metropolitan areas’ real estate markets after strong cutbacks in March, the development of real estate prices remains a risk factor for the Chinese business cycle.

After last month’s significant decline, the assessment of China’s current economic situation has also improved. The respective indicator increased by 5.1 points, now scoring at a value of precisely 0.0 points.

For further information please contact

Dr. Oliver Lerbs, Tel.: +49 (0) 179/1409582, Email: lerbs@zew.de

Prof. Dr. Michael Schröder, Tel.: +49 (0) 621/1235-140, Email: schroeder@zew.de