China, the world’s second-biggest economy, is in a rocky economic period marked by rolling Covid clampdowns.
The timing is awkward, given China is in the run-up to the 20th National Congress of the Communist party in November, which is expected to extend president Xi Jinping’s grip on power.
But the issues go beyond the pandemic and notably include a deflating property bubble. Here we break down China’s economic outlook – and what it means for Australia and other countries.
How is China faring?
The International Monetary Fund (IMF) last month cut its forecast for China’s 2022 GDP growth by a quarter to 3.3%. That would be the slowest pace in four decades – excluding 2020’s Covid crisis dip – and below the government’s 5.5% target.
In July, almost all the data, from retail sales and manufacturing to investments, missed expectations, says Raymond Yeung, ANZ’s chief economist for greater China.
“My biggest worry is…
