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Q2 2021 China Macro Data Recap

China’s Q2 macroeconomic data were broadly consistent with a slowing economy, following the pullback of last year’s stimulus measures to counter the effects of the pandemic. Quarter-on-quarter GDP data painted a far more dire picture of economic momentum than year-on-year data, and slowing credit growth will likely produce additional cyclical weakness later in the year. Exports continue to outperform expectations and power resilient industrial production growth rates, while commodity imports have moderated, consistent with slowing property and infrastructure construction. Monetary policy signals have turned more accommodative, but tightening fiscal policy is unlikely to meaningfully change this year.

Posted July 26, 2021
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