China's Q2 GDP likely expanded by about 0.9% – Yicai
|Citing a poll of economists, Yicai.com reported on Thursday that “the Chinese economy is likely to have expanded about 0.9% in Q2, and should set a 4.3% pace this year in a slow recovery from the disruptions caused by COVID-19 outbreaks.”
Key takeaways
Infrastructure investment, which could reach at least 6-8% in 2022, will be the main driver, followed by resilient exports and a marginal consumption rebound.
But unemployment and weak property investment would still slow down the recovery process.
Economists also raised their expectations for the yuan against the U.S. dollar to 6.68 by the end of July, compared with the 6.7114 reading on June 30.
Market reaction
USD/CNY remains better bid so far this Thursday’s Asian trading, as renewed covid concerns from China weigh on the domestic currency. The pair is currently trading at 6.7105, up 0.05% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.