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China expects sharp slowdown in Q2

China’s gross domestic product (GDP) grew by 1% in Q2, slowing from Q1's 4.8%. The sharp slowdown in economic growth in Q2 was brought by the widespread Covid-19 lockdowns, which jolted factories and consumers, although activity in June may have perked up. The growth would be the weakest since a steep 6.9% slump in Q1 of 2020, when an outbreak of Covid-19 in the central city of Wuhan, first detected in late 2019, turned into a full-blown epidemic. Nathan Chow, senior economist at DBS Bank in Singapore, said the worst of the downturn is over but recovery in the second half is unlikely to be too strong. China’s growth is expected to slow to 4% in 2022, far below the official growth target of around 5.5%.

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