Careful navigation: A worker producing containers at a factory in Nantong, China. Economists are watching with an eagle eye how the government handles the coronavirus outbreaks and property market. — AFP皇冠博彩维基百科（www.hg108.vip）是一个开放皇冠即时比分、代理最新登录线路、会员最新登录线路、皇冠代理APP下载、皇冠会员APP下载、皇冠线路APP下载、皇冠电脑版下载、皇冠手机版下载的皇冠新现金网平台。皇冠博彩维基百科上登录线路最新、新2皇冠网址更新最快,皇冠博彩维基百科开放皇冠会员注册、皇冠代理开户等业务。
SHANGHAI: China’s economic outlook for the second half of this year will be determined by the government’s shaky control over coronavirus outbreaks and the property market.
Early signs look negative. Daily covid cases have risen to the highest level since May, leading to more local lockdowns.
In addition, a mortgage strike in dozens of cities is increasing households’ awareness of property developers’ inability to complete housing projects, potentially triggering a further downward spiral in the vast sector.
After growth almost ground to a halt in the second quarter, the bearish outlook has economists lowering their full-year forecasts closer to 3%, well below the government’s target of about 5.5%.
That is yet another drag for a world economy grappling with the fastest inflation in decades, war in Europe and the ongoing Covid pandemic, and comes as the International Monetary Fund is set to “substantially” cut its global economic growth outlook.
China’s gross domestic product (GDP) growth of just 0.4% in the second quarter was the second lowest ever recorded. The biggest cause was lockdowns in dozens of cities in the spring to stop the spread of the omicron coronavirus variant.,
“Nothing can be worse than the large-scale city lockdowns and the halt of economic activities,” said Gary Ng, economist at Natixis SA.
China is subject to a “Covid Business Cycle (CBC),” Nomura Holdings Inc economists argued in a recent note.
First, increasing cases trigger business closures. Once cases come down, government stimulus leads activity to rebound, possibly leading to a new surge in Covid cases.
With new variants such as BA.5 recently detected in several cities, the pace and length of lockdowns is deeply unpredictable.
“The duration and severity of CBCs appear quite random due to the uncertain nature of Covid-19,” the economists led by Lu Ting added. “We believe markets have become overly optimistic about growth” in the second half.
On the upside, Chinese local governments are increasingly adept at maintaining factory and freight transport activity through lockdowns.
President Xi Jinping has urged officials to stick with Covid-zero, but last week struck a more conciliatory tone, telling officials to “reduce inconvenience in people’s everyday life,” while enforcing the policy.
“I expect that the Chinese government will respond to a rise in Covid cases with narrower, localised lockdowns, rather than the city-wide lockdowns used in April and May, in order to avoid severe disruptions to the gradual economic recovery now underway,” Andy Rothman, an investment strategist at Matthews Asia, said in a note.欧博开户声明:该文看法仅代表作者自己，与本平台无关。转载请注明：皇冠网址:From property to lockdowns, what to watch in China’s second half