The news: The Chinese government is banking on post-lockdown revenge spending to drive economic growth this year, even as it faces a number of headwinds—global economic slowdowns, a depressed property market—that could slow recovery.
Reasons for optimism: Plenty of signs point to a robust recovery in spending this year as consumers revert to prepandemic purchasing behaviors and spend heavily on services.
Causes for concern: Despite indicators that China’s economy is on the upswing, there are signs of turbulence that may prevent a full recovery from occurring this year.
The big takeaway: China’s path to recovery in 2023 will be made difficult by both internal and external factors. The global slowdown in consumption coupled with Beijing’s decision to clamp down on property speculation and avoid fiscal stimulus could drive consumers to avoid big-ticket purchases and hold on to their savings.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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