Market Outlook: China Faces Challenges in Sustainable Recovery

According to Julian Evans-Pritchard, the head of China economics at Capital Economics, China's disappointing November data highlights the challenges Beijing faces in achieving a sustainable recovery in growth. Evans-Pritchard argued that the November data showed an "unexpected loss of momentum" as growth in retail sales declined to 3% after hitting an eight-month high in October. Capital Economics also predicted that the slowdown in November could be temporary, and that with more policy support in the coming months, growth could rebound. "However, we are skeptical that the stimulus can provide more than a short-term improvement," Evans-Pritchard stated, adding that "especially with Trump starting to implement his tariff threats, it is unlikely that the current strength of export demand can be maintained."