China economic data likely to show recovery is fading quickly
BEIJING (Reuters) — A flurry of economic data from China on Monday is expected to show its post-pandemic bounce is quickly fizzling out, raising expectations that Beijing needs to unveil more stimulus measures soon to shore up activity and shaky consumer confidence.
After a strong start to the year following the dismantling of tough COVID-19 measures, recent data have pointed to a sharp loss of economic momentum due to weak demand at home and abroad and a protracted slump in the country's property market, traditionally a significant growth driver.
The world's second-largest economy likely managed just 0.5% growth in the second quarter compared with three months earlier, on a seasonally adjusted basis, according to economists polled by Reuters, with separate data for June expected to show industrial output, retail sales and investment continuing to cool.
Some economists have blamed the «scarring effects» caused by years of strict COVID measures and regulatory curbs on the property and technology sectors — despite recent official efforts to reverse some curbs to support the economy.
With uncertainty running high, cautious households and private businesses are building up their savings and paying off their debts rather than making new purchases or investments. Youth unemployment has hit record highs.
Compared with a year earlier, gross domestic product (GDP) may have grown 7.3% in April-June from a year earlier, compared with growth of 4.5% in the first quarter, economist said.
However, that reading will be heavily skewed by a sharp slump in activity last spring, when parts of the country were in paralysing COVID-19 lockdowns.
Data on Thursday showed China's exports fell the most in three years in June, slumping a
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