China's Economic Overview and Challenges

Sporadic outbreaks of Covid-19 dampen consumer sentiment Covid-19 outbreaks becoming more frequent and impactful New Covid-19 Cases in China This is dampening consumer sentiment and willingness to spend Survey of urban residents' relative preference to invest, save, or consume 300 السليلية Apr-21 Oct-21 200 Rolling 7 day average 0 Apr-20 Source: Our World in Data (data as of 25/1/2022) Consume more Invest more 25% ☑24% הווי 52% Deposit more savings e Although China continues to adopt a zero tolerance approach to Covid-19, outbreaks are becoming more frequent and the number of new cases is accelerating. BEA東亞銀行 Source: People's Bank of China (data as of 31/12/2021) • With high uncertainty, residents prefer to save rather than invest or consume. 3

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