China’s economy flashes hints of weakness
Expansion in China’s factory sector slowed in June, as export demand weakened while supply bottlenecks held back production, official data showed Wednesday.
Equally worrying, China’s services sector, a persistent laggard in the country’s post-pandemic rebound that Beijing policy makers are eager to see drive more of the economy, softened as recent coronavirus outbreaks again hindered consumer spending.
The hints of weakness on both fronts come as economists lowered expectations for growth in the world’s second-largest economy. In recent weeks, Morgan Stanley and Barclays, among others, have downgraded their forecasts for China’s full-year gross domestic product to below 9%, citing the impact of higher raw material prices on production and weaker-than-expected consumption.
From:ChinaDaily | 2021-06-30 07:20
China s economic policies will remain generally stable to solidify the recovery in the second half of this year, and the policy focus may increasingly shift toward curtailing risks at home and abroad, according to policymakers and advisers.
As strong economic growth momentum continues, policy measures should prevent external shocks to improve China s resilience and stabilize the overall leverage level, in case global economic conditions change, said economists who shared the policy outlook with China Daily on Tuesday.
In the second half of the year, monetary policy normalization in China should continue to proceed cautiously, unless inflation moves well above target and inflation expectations become unanchored, Sebastian Eckardt, the World Bank s lead economist for China, said on Tuesday in an exclusive written interview with China Daily.
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1 2021-06-29 10:12:55China Daily
Editor : Zhang Mingxin
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China s GDP growth is projected to reach 8.5 percent on a yearly basis in 2021, thanks to the pent-up demand and strong exports, according to the World Bank, which updated the economic forecasts in its regional economic report on Tuesday.
It marks an upward revision by 0.6 percentage points from the World Bank s projections in December 2020, largely due to stronger-than-expected foreign demand, it said.
The World Bank also predicted that China s year-on-year GDP growth may moderate to 5.4 percent in 2022, when the low base effects dissipate. It reflects the progressive de-risking and deleveraging efforts, policy normalization and diminished support from net exports.
Economic activity will continue to accelerate in China next year on the back of existing supportive policies, despite a grim outlook for global growth due to the resurgence in novel coronavirus cases and lockdowns, economists said.