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Is China heading for Japan-like stagnation? Economist says the worst is likely behind us


A food delivery worker sits outside a restaurant at a shopping mall in Beijing on May 30, 2023.Jade Gao | Afp | Getty ImagesBEIJING — China’s economic recovery from the pandemic is set to broaden, meaning the country isn’t headed toward Japan-style stagnation just yet, according to Macquarie’s Chief China Economist Larry Hu.China’s recent economic data largely disappointed investors hoping for a sharp rebound in the world’s second-largest economy after the end of Covid controls in December. Youth unemployment hit a record high of above 20% in April.In a report Friday, Hu attributed the recent economic slowdown to a “premature” withdrawal of policy support after better-than-expected first quarter data.While the worst is behind us, the recovery is far from being self-sustaining.Larry HuChief China economist, MacquarieGoing forward, he expects policymakers to remain accommodative given the lack of inflation and high youth unemployment — with more urgency to ease as year-on-year comparisons soften in the third quarter.”As the recovery broadens ove …

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