From Property to Lockdowns, What to Watch in China’s Second Half
- Covid outbreaks and controls are key for growth this year
- Economists lowering forecasts closer to 3% for the year
This article is for subscribers only.
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.