China: Velocity of Money Circulation (GDP/M2)

Macro

2026-03-01

Description

China's currency circulation velocity (GDP/M2) is mainly used to measure the efficiency of currency circulation in the economy. A higher currency circulation velocity usually indicates active economic activities and higher currency utilization efficiency; while a lower velocity may indicate weak economic activity. Or currency gets stuck in the financial system.

Published by
Choice Eastmoney
Frequency
Yearly
Next Update

AI Data Insight

In 2025, China's money velocity (GDP/M2) further slipped to 0.412 (previous value 0.4303), continuing to set a new historical low. Although the money supply M2 maintained expansion, weak demand in the real economy led to funds accumulating within the financial system, posing severe challenges to the transmission efficiency of monetary policy.

AI Data Insight

In 2025, China's money velocity (GDP/M2) further slipped to 0.412 (previous value 0.4303), continuing to set a new historical low. Although the money supply M2 maintained expansion, weak demand in the real economy led to funds accumulating within the financial system, posing severe challenges to the transmission efficiency of monetary policy.

Description

China's currency circulation velocity (GDP/M2) is mainly used to measure the efficiency of currency circulation in the economy. A higher currency circulation velocity usually indicates active economic activities and higher currency utilization efficiency; while a lower velocity may indicate weak economic activity. Or currency gets stuck in the financial system.

Published by
Choice Eastmoney
Frequency
Yearly
Next Update