onsdag 1. desember 2021

How China can get its economy back on track after the 2021 battering

This has been an unusual year for the Chinese economy. As it recovered from the most catastrophic shock in modern history, annual growth rates in the first half appeared buoyant but mostly reflected favourable base effects. As the year progressed, the economy was battered by a series of natural and man-made shocks. Resurgences of Covid-19, severe flooding, a cooling housing market, soaring commodity prices and a severe power shortage all took their toll on the post-pandemic rebound that was already losing steam due to lacklustre domestic demand.

A series of punitive regulatory tightening measures added to the economic woes and posed a setback for financial markets. Looking ahead to 2022, the economy is likely to be buffeted by many of the same factors, which can be categorised into three groups: the transitory, the persistent and the uncertain.