China's Economic Overview and Challenges slide image

China's Economic Overview and Challenges

China's economy has seen easing momentum since Q3 2021 and uneven economic development due to Covid-19 Growth momentum slowed by a number of headwinds China's Economic Growth 20% Exports is the growth driver, while consumption lags behind Growth rate 15% 10% 5% 0% -5% -10% -15% 2016 2017 2018 2019 2020 2021 Year-on-year growth Quarter-on-quarter growth Main Economic Indicators for China 200% year-on-year growth (%) 150% 100% 50% 0% -50% -100% 2019 2020 2021 Exports Retail Sales . Source: National Bureau of Statistics, PRC (data as of 17/1/2022) The economy has faced sporadic COVID outbreaks, energy crunches, heavy regulatory oversight, and floods. Property market downturn has led to a decline in the real estate sector as well as its related industries, such as construction and building materials (cement, steel, coking coal, etc.). BEA東亞銀行 • Source: National Bureau of Statistics, PRC (data as at 17/1/2022) The exports market is surprisingly resilient, defying supply chain bottlenecks and soaring input costs. Meanwhile, private consumption is dragged down by Covid- 19 and the recent property market downturn. 2
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