China plans ‘great efforts’ for economic recovery

China will make great efforts to consolidate its economic recovery particularly in the crucial third quarter, putting a priority on stabilising employment and prices, state media reported on Friday after a regular cabinet meeting.

The world's second-biggest economy narrowly missed a contraction in the second quarter, growing just 0.4 per cent year-on-year, weighed down by Covid-19 lockdowns, a weak property sector and cautious consumer sentiment. The government has set a 2022 growth target of around 5.5 per cent.

Major hurdles in the second half include China's persistent zero-Covid policy that entails curbs and restrictions that could again disrupt local businesses, employment and consumption.