China’s economy has almost come to a standstill. Recovery may not come even in the second half of the year

Repeated lockdowns due to the re-spread of Covid-19 have brought the world’s second-largest economy to the brink of recession. However, even the second half of the year does not give much hope for its recovery.

China’s economic growth is slowing down

China’s gross domestic product grew by just 0.4 percent year-on-year in the second quarter. This is a sharp slowdown in economic growth, which was still almost five percent between January and March this year. The culprit is the repeated measures taken by the Chinese authorities against the spread of the coronavirus infection, which has appeared in major Chinese cities, especially Shanghai.

The outlook for the second half of the year is not positive

While the June data suggested some economic recovery, this is unlikely to be enough for a stronger rebound on growth. “The outlook for the second half of the year is not very good in terms of a robust economic recovery. The economy faces uncertainties in the form of many unstable factors,” Chinese media reported.

Among other things, they urge China’s central bank to consider easing monetary policy, for example by reducing reserve requirements. However, the People’s Bank of China has said that its aim is to keep the Chinese currency stable.

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Golden Brokers Review

Golden Brokers Limited was founded in 2018, it is...

Real Estate ETFs: A Practical Guide to REIT Exposure Through Funds

Real estate has long attracted investors looking for rental...

Musk reportedly invested a billion dollars in the Skydance media group

American billionaire Elon Musk has invested roughly one billion...

Meta increases profit and revenue, to issue new class of shares to finance AI investments

Meta Platforms - the American internet company increased its...

The US dollar is weakening, with doubts surrounding AI behind its decline

The US dollar is weakening today. According to Reuters,...

European stocks fall amid concerns over economic impact of protests in France

European stocks are falling after the opening of trading....

Robotics Stocks: A Framework for Finding Real Automation Exposure

Robotics is becoming an increasingly important investment theme as...
spot_img

spot_imgspot_img