[Asia Economy Reporter Jang Sehee] The Chinese economy, which was hit by the spread of the novel coronavirus infection (COVID-19), is expected to achieve a growth rate in the 5% range in the second half of the year along with a recovery in domestic demand.
The Bank of Korea's Beijing office stated in its report titled "Recent Economic Trends in China and Japan and Outlook for the Second Half of the Year" released on the 28th of last month, "With the economic recovery of major advanced countries such as the US and Europe, the decline in Chinese exports is easing, and supported by stimulus measures, domestic demand including consumption and investment in China will also revive," forecasting accordingly.
However, internally, employment issues, and externally, the enactment of the Hong Kong Security Law, the second wave of overseas epidemics, and the US presidential election pose downside risks to the Chinese economy.
Meanwhile, the Bank of Korea expects that the Chinese yuan exchange rate will fluctuate whenever market instability factors such as the Hong Kong issue emerge in the second half of the year, but considering the Chinese government's policy direction and the rapid recovery of the Chinese economy, the possibility of a significant rise is low.
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