Skip to main content

Prop from stimulus to be short-lived

China’s economy has regained some cyclical momentum after a marked reversal of the post-zero-COVID recovery last summer. Policy support that's already in the pipeline should keep the better data flowing for a while. But once this support has been depleted later in the year, the economy will weaken again. China's structural challenges loom as large as ever. A major correction in construction activity still lies ahead.