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China’s economy expected to rebound in H2

Economists and analysts have expressed optimism that China’s economy will rebound in H2 of the year. They expect to see a gradual recovery in the coming months in some key economic indicators with stronger fiscal policies and targeted monetary policy easing, including infrastructure spending, financial support for small and medium-sized enterprises, and cuts in the reserve requirement ratio and policy rates. Their forecast comes despite China’s economy having been severely affected by resurgence in domestic COVID-19 cases and changes in the global environment. Cheng Qiang, chief macro analyst at CITIC Securities, said China is likely to see a rebound in major indicators including industrial production, investment, consumption and exports in May with the gradual resumption of work and production.

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