ING: How Long Will It Take For The Chinese Economy To Recover To Pre-Covid Levels?

ING write “it is really about timing when it comes to the question of economic recovery to the pre-Covid level. The tricky part is that even though the Chinese government is working hard to open the domestic economy with an easing of Covid measures or even eliminating most of them, the timing is not perfect. Our house view is that the US and Europe could enter a mild recession in the first half of 2023. As such, there will be fall in external demand, export-related activities, including manufacturing, should slow, which would derail the recovery of the Chinese economy.”

• “We therefore expect that the Chinese government will increase fiscal strength to support the domestic economy by continuing construction of uncompleted home projects and plans for more transport, energy and technology infrastructure.”