BEIJING - A slew of economic data released Monday will likely show that China's post-COVID economic recovery is losing momentum, spurring expectations that Beijing will need to announce more stimulus measures to shore up faltering growth.
After a strong start to 2022 as COVID restrictions eased, recent data point to a sharp loss in economic momentum driven by weak domestic demand, a property market slump and softening exports.
Gross domestic product for the second quarter is forecast to grow just 0.5% from the previous quarter and 7.3% from a year ago, slowing from 4.5% growth in the first quarter.
Industrial production, retail sales and investment are all expected to post weaker growth in June, highlighting rising headwinds for the world's second largest economy.
The data is likely to reinforce views that authorities will need to roll out more stimulus in the form of fiscal spending, support for businesses and consumers, and some easing of property curbs.
However, economists say a quick turnaround is unlikely given "scarring" from COVID restrictions and regulatory crackdowns that have weighed on consumer and business sentiment.
ThePeople's Bank of China is seen cutting banks' reserve requirement ratio by 0.25 percentage points to boost lending, while keeping interest rates on hold. Yet officials remain wary of excessive easing that could harm banks and further stimulate already high debt levels.
China's economic recovery appears to be stalling as data points to a substantial loss of momentum, increasing the likelihood of more stimulus measures from Beijing to support faltering growth.
