China economic focus July 2022: how will China finance its recovery?
China’s GDP growth slowed to 0.4% year-on-year in the second quarter. With large-scale lockdowns coming to an end in June and China relaxing its travel restrictions, fostering a quick recovery has become the country’s priority. China needs to pull up both investment and consumption to achieve the kind of speedy recovery seen in H2 2020. However, our analysis shows that China faces some financial challenges to support its recovery fully.