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Economy & Finance

Coronavirus: Demand Holds Key to Economic Recovery

Why supply-side recovery isn't enough

20209 min read

As China's factories restarted after pandemic lockdowns, the bigger question was whether consumers—domestic and foreign—would show up to buy. Demand recovery proved slower and more uneven than supply normalization.

Supply vs Demand

China's policy response focused heavily on getting production back online. But with global demand suppressed and domestic consumers cautious, many factories operated well below capacity.

Originally published by MacroPolo, Paulson Institute