FX.co ★ Rising air pollution in China points to expanding economy

The DataTrek Research team has recently made a surprising statement. They believe that China's severe air pollution indicates an imminent economic surge in the country. This situation is likely to drive up oil prices, according to analysts. It seems that the Chinese economy is gearing up for a significant surge. At least, DataTrek Research is anticipating this forecast to come true. However, this comes at a significant cost, sacrificing the country’s environment. Currently, most factories in China's major cities are ramping up production. This increase in manufacturing is coinciding with a rise in consumer activity, as citizens travel and consume more, inevitably impacting environmental pollution. DataTrek Research analysts have noted a sluggish recovery of the Chinese economy following the pandemic. The repercussions of this recovery are evident in the ecological damage, manifested as pollution and smog over the country's major cities, they emphasize. Presently, a spike in air pollution has been recorded in five of China's largest cities. This is closely linked to economic growth, DataTrek Research points out. While the harmful effects of polluted air on people and the environment are undeniable, analysts argue that it is a positive factor for the economy. Previously, ecological deterioration was noted in Beijing, Guangzhou, Chongqing, Shenzhen, and Shanghai. Against this backdrop, experts anticipate a rapid growth in China's economy, along with a significant rise in oil prices in the coming months.