Don’t be too hopeful about China’s bounce-back

Pent-up demand, and the urge to splurge Covid-19 savings, may splutter out. More modest growth of under 5 per cent may be on the cards.

Many economists expect that the economy will grow at a pace between 5 per cent and 5.5 per cent. PHOTO: BLOOMBERG
New: Gift this subscriber-only story to your friends and family

With the surprise lifting of its Covid-19 restrictions in January, China reopened its borders after three years. Naturally, now there are expectations that this will lead to a sturdy bounce-back for the Chinese economy.

A consensus among economists is that due to pent-up demand, much of the uptick for the economy will come from an increase in private consumption. 

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.