Economists say while China has taken a stride towards reopening, a full economic rebound will be slow and bumpy, with consumption only likely to recover when coronavirus infections start to plummet.
As logjams in the global supply chain ease, China is losing the edge it had over the past three years when the coronavirus disrupted production in the rest of the world, a top government economist says.
Several local governments in China have recently revised down their revenue targets for the year, citing the country’s property market slump, tumbling tax takes and Covid-19 disruptions as key reasons.
In its annual health check of the Chinese economy, the International Monetary Fund suggested that the government cut interest rates and ease strict coronavirus curbs to steady recovery.
China’s decision to ease coronavirus containment measures has been welcomed by foreign business groups, but many say the positive impact will be limited and have urged further relaxation.