Citing a poll of economists, Yicai.com reported on Thursday that “the Chinese economy is likely to have expanded about 0.9% in Q2, and should set a 4.3% pace this year in a slow recovery from the disruptions caused by COVID-19 outbreaks.”
Key takeaways
Infrastructure investment, which could reach at least 6-8% in 2022, will be the main driver, followed by resilient exports and a marginal consumption rebound.
But unemployment and weak property investment would still slow down the recovery process.
Economists also raised their expectations for the yuan against the U.S. dollar to 6.68 by the end of July, compared with the 6.7114 reading on June 30.
Market reaction
USD/CNY remains better bid so far this Thursday’s Asian trading, as renewed covid concerns from China weigh on the domestic currency. The pair is currently trading at 6.7105, up 0.05% on the day.