China’s latest economic data unexpectedly improved and with stimulus measures starting to take effect, the economy is expected to pick up in the coming months, said investment management company Invesco.
Overall, the main drivers of the economy – manufacturing, investment and consumption – are starting to emerge from uncertainties, and the worst of the downturn may have ended, it said. Even without the “bazooka” stimulus measures, China’s recovery would still be on track, it said.
Although China’s exports may see more challenges in the rest of the year, the recent data has suggested a bottom-out of such adversities, it said.
The biggest uncertainty facing China’s economy this year remains the sluggish property market and a renewed and accelerated decline in property prices could trigger a worrying negative wealth effect, it said.
The government may introduce more fiscal support measures to stimulate infrastructure investment and further relax monetary policy to boost the property market, it said.