Weekend Long Read: The Chinese Economy’s Uncertain Path to Recovery

The biggest challenge to China’s economic growth is the Covid-19 pandemic. Since the second half of last year, its impact on the economy has grown substantially. Its impact this year has been greater than in the first half of 2020 to some extent.

The road to recovery will be uneven in the second half of this year, despite some positive signs since mid-May. In June, both purchasing managers indexes and some major high-frequency indicators returned to month-on-month growth, and some even returned to year-on-year growth.