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China Economy Braces for Further Slump as Covid, Protests Spread

  • Economic activity declined in Nov, Bloomberg data shows
  • PBOC has boosted its monetary support, cutting RRR by 25bps
Bloomberg business news
PBOC Boosts Stimulus to Aid Economy
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China’s economic activity slumped in November and could drop further in coming weeks as Covid outbreaks spread across the country and protests against tighter virus restrictions escalate.  

Bloomberg’s aggregate index of eight early indicators showed a likely contraction in activity in November from an already subdued pace in October. With Covid cases spreading rapidly in each of China’s provinces now and major cities like Guangzhou, Beijing and Zhengzhou imposing new restrictions to limit residents’ movements, the outlook remains grim.