Is 5% Growth Possible in China

China GDP growth targets almost always get met. But this year, there are lots of headwinds that may prevent the just-in-time numbers that investors hope.

May 2022

Multi-Asset

Usually They Deliver

In an uncanny way, China has a record of delivering on it's stated growth target. Come what may. But is it possible given the exogenous shocks it faces today?

On the one side, the zero-COVID policy currently imposes some level of restriction on 25-35% of the economy. Even beyond Shanghai. And it is unclear how long this will last.

On the other side, credit and public debt growth are gaining ground. And further policy support in terms of infrastructure spending is the data point many strategists are watching closely.