China's economy in the second quarter of 2023 is showing steady but unspectacular growth as the post-COVID reopening continues. The services sector is recovering, but manufacturing and exports face headwinds.
Sector Performance
The services sector is leading the recovery as consumers return to restaurants, travel, and entertainment. However, consumer confidence remains fragile and spending is cautious compared to pre-pandemic levels.
Challenges Ahead
- Property sector weakness persisting
- Youth unemployment at record highs
- Export demand softening globally
- Local government debt concerns