World Economic Forum: China’s economy ‘needs time to recover’, with big rally and massive stimulus seen unrealistic
- Panellists on the final day of the World Economic Forum said the impact of the coronavirus cannot be underestimated amid China’s slowing recovery
- They also said a focus on medium-term growth measures is key to more sustainable growth, big rebound in the short term and massive government stimulus unlikely
A big rebound for China’s economy in the short term, along with massive government stimulus to shore up the weakening economic recovery, are unrealistic, industry leaders and economists said on the final day of the World Economic Forum on Thursday.
China has been grappling with slowing recovery momentum, and the scars from the impact of the coronavirus which derailed the world’s second-largest economy need time to fade, panellists in the northern Chinese city of Tianjin said.
“We cannot underestimate the negative impact of a years-long pandemic, which I believe has exhaustedly consumed public resources in many aspects, we need some time to recover,” said former World Federation of Engineering Organisations president Gong Ke.
Dwindling export demand has also held back China’s manufacturing sector, and a property slump and reduced fiscal support have limited real estate and local government revenues.
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China had hoped to rely on consumption as a main driver for its post-pandemic economic recovery, but mounting external and internal challenges have created new and complicated growth barriers, while deflation risks and surging youth unemployment have resulted in widespread market fears.