Most forecasters including IMA had predicted that China’s reopening, post lockdown, would create an economic boom of unusual proportions. That has failed to occur. In fact, following the initial couple of months, where pent-up demand unleashed itself upon the market place, the consumption bubble rapidly deflated. 

A prolonged recovery in China will require broad, sustained improvements in exports and investments. This would be subject to the vagaries of external consideration – developments in the economies of China’s trade partners. Currently, many seem to have avoided a recession, but the jury is still out. Central banks across the world are raising interest rates to tame inflation and consequently may force a recession in their markets, in order to avoid an even worse scenario of a hard landing. As America and Europe begin to slow, Chinese exports will be affected and consequently, so will investment.