“China’s economic system doubtless grew on the slowest tempo in 1-1/2 years within the fourth quarter, dragged by weaker demand resulting from a property downturn, curbs on debt and strict COVID-19 measures, elevating the warmth on policymakers to roll out extra easing steps,” mentioned Reuters forward of the important thing information launch.

Highlights

Knowledge on Monday is predicted to indicate gross home product (GDP) grew 3.6% in October-December from a 12 months earlier – the weakest tempo because the second quarter of 2020 and slowing from 4.9% within the third quarter, a Reuters ballot confirmed.

The world’s second-largest economic system, which cooled over the course of final 12 months, faces a number of headwinds in 2022, together with persistent property weak point and a recent problem from the latest native unfold of the highly-contagious Omicron variant.

Policymakers have vowed to move off a sharper slowdown, forward of a key Communist Social gathering Congress late this 12 months.

The central financial institution is ready to unveil extra easing steps, although it would doubtless favour injecting more money into the economic system quite than reducing rates of interest too aggressively, coverage insiders and economists mentioned.

Policymakers have additionally pledged to step up fiscal help for the economic system, dashing up native authorities particular bond issuance to spur infrastructure funding and planning extra tax cuts.

Market response

World markets stay lackluster forward of the important thing China information, which in flip weigh on the Antipodeans like AUD/USD and NZD/USD.

Learn: NZD/USD bears assault 0.6800 on USD rebound, firmer yields, China GDP eyed