AMRO’s 2021 Annual Consultation Report on China
China’s economy has recovered strongly from the downturn brought about by the COVID-19 pandemic.
China’s economy has recovered strongly from the downturn brought about by the COVID-19 pandemic.
China has strong economic foundations to pursue and achieve high-quality growth. Against the backdrop of a resilient labor market, well-contained inflation pressures, strong external position and sound banking system, China’s…
China has strong economic foundations to pursue and achieve high-quality growth. The country’s recovery from the 2020 downturn has stayed intact despite the slowdown in H2 2021 and H1 2022 due to COVID-19 outbreaks, headwinds in the property sector, and supply side disruptions. Against the backdrop of a resilient labor market, well-contained inflation pressures, strong external position and sound banking system, China’s economic recovery should regain momentum in H2 2022, with growth for the year coming in at about 4.8 percent.
China’s producer price index (PPI) and consumer price index (CPI) inflation diverged in 2015-2016 and again in 2021.
In September 2020, China announced that it would aim to peak its carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.
China’s economic recovery from the downturn due to the COVID-19 pandemic remains on track, and policies have been geared toward pursuing high-quality growth. In recent months, growth momentum weakened due to the moderating global economic recovery and several shocks.
China’s Evergrande Group missed three bond interest payments in September and October 2021, but has been able to make payment on its obligations just before the end of their respective one-month grace periods.
Despite the complex tensions and high stakes in the US-China relationship, a major technology split is likely to be averted in the medium term. But a better long-term outcome for the global economy will require fair and binding multilateral rules of conduct.
China’s housing market is booming again. Not only has the market emerged in 2020 from the COVID-19 pandemic largely unscathed, but it has also started to show overheating signs in several cities this year.
When China began plugging into global production networks and cross-border trade more intensely in the early 2000s, few might have foreseen it becoming one of the most important hubs for many high-tech global value chains (GVCs) by the late 2010s.