China's economy is seen rebounding in the second quarter of 2022, boosted by the People's Bank of China's (PBOC) latest easing policies, although the growth will likely peak in Q3, MNI reports, citing Liu Shijin, a member of the central bank’s monetary policy committee.
Additional quotes
"Considerable efforts" are needed to reach the GDP target of around 5.5% in 2022 as the country faces pressure from soft demand, pandemic-disrupted supply and a weakened outlook.”
“For longer-term growth, China needs new growth engines, such as building up economic zones around big cities, Liu said. Regional economic zones can contribute to over 70% GDP growth in the future, so they are crucial to ensuring 5-5.5%/year growth in the next five years.”
Market reaction
Despite the renewed strength in oil and gold prices, AUD/USD is correcting sharply below 0.7300, as risk-off flows have returned in early European trading.
The spot was last seen trading at 0.7280, down 0.46% on the day.
