On CNBC, David Mann of the Mastercard Economics Institute said China is facing challenges due to its property sector not performing well, so the ability to stimulate growth is not strong. He added that the desire for economic growth above the long-term normal isn’t particularly strong as well.
Although China’s overall growth and demand is likely to be “flattish” this year, with real GDP growth expected to be around 5%, overall fundamentals for the long term are still strong, Mann noted.
He also said there is a major increase in the cost of international travel amid supply constraints due to COVID-19 restrictions.
Price Action: China’s Shanghai Composite Index gained 0.66% to close at 3,455.67 on Wednesday.
