According to the latest survey conducted by Bloomberg, China’s economy is likely to expand by 3.5% this year, way below the official target of around 5.5%.

Key takeaways

“It’s not just China’s strict Covid Zero policy of lockdowns and mass testing that’s buffeting the economy. A housing market collapse, drought, and weak demand both at home and overseas have all undercut growth.”  

“China’s recovery likely stalled in August, hit by heatwaves, power shortages and Covid-19 flare-ups -- on top of a property slump. Leading indicators signal weakening momentum from output to consumption.” 

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