What Bloomberg Economics Says “China’s April activity data laid bare the damage from Covid lockdowns in Shanghai and other parts of the country.
The impact was much wider and deeper than expected." “The data point to a deeper slowdown this year than expected." Chang Shu and Eric Zhu For the full report, click here Beijing has signaled that policy makers will step up support for the economy, with Premier Li Keqiang recently urging officials to ensure stability through fiscal and monetary policy.
The People’s Bank of China took steps on Sunday to ease a housing crunch by reducing mortgage rates for first-time homebuyers.
However, it left the interest rate on one-year policy loans unchanged on Monday, as inflation pressure and worries about capital outflows reduce the scope for more easing. “It is clear that the impact of lockdowns, or the fear of lockdowns, overwhelmed any economic easing, and the Shanghai lockdown had ripple effects across the nation," said Wei Yao, head of research for Asia Pacific and chief economist at Societe Generale SA.