July 07, 2022 - 12:22 PM 238 views
According to a survey of economists, the Chinese economy "is estimated to have expanded approximately 0.9 percent in Q2 and should set a 4.3 percent pace this year in a sluggish recovery from the interruptions caused by COVID-19 outbreaks," according to a Yicai.com report on Thursday.
The primary driver will be infrastructure investment, which is expected to increase by at least 6–8 percent in 2022. Resilient exports and a little increase in consumption will also contribute.
However, the recovery process would still be slowed down by unemployment and poor real estate investment.
By the end of July, economists predict the yuan to be worth 6.68 versus the dollar, up from the June 30 reading of 6.7114.
The Market Reaction
This Thursday's Asian trading has seen the USD/CNY currency pair stay better bid, as fresh fears about China's currency continue to affect the local unit. The price of the pair has risen 0.05 percent today to 6.7105.
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