June 4, 2020

China Economic Update: June 2020

Modest Chinese stimulus highlights competing policy objectives.

Since March, Chinese authorities have eased COVID-19 countermeasures and attempted to return to normal economic activity. So far, progress has been slow, with high frequency measures suggesting a plateauing in the industrial recovery from early April and ongoing softness in services. While the majority of the country’s firms are back in business, only a small proportion are fully operational, given weakness in domestic demand and a constrained export environment. As a result, China will implement stimulus to support the rebound, however it is likely to look different to earlier episodes.

For further details, please see the China Economic Update – June 2020

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