The economy should gain more momentum in the coming months. There are several reasons to feel good about the economy’s improvement. The latest data suggest that demand is steadying after a period of weakness and that the economy is rebalancing towards a more sustainable pattern.
China’s economic recovery will likely gain more traction as additional policy support takes effect in the coming months. However, the economy will remain fragile because of the unrelenting weakness in the property market, continued financial stresses and weak confidence among households and private businesses.
The country’s rebound will benefit other Asian economies, but the boost may not be as great as before, given the smaller recovery and the inward turn in Chinese economic policies.
