Slow recovery in China
Growth figures in China in May showed that the recovery process at a global level will most likely be slow and gradual. Retail sales figures (-2.8% annual), industrial production (4.4%) and investment (-6.3%) continued to show improvement but still remained under estimates. Unemployment remained stable at 5.9%. Private consumption and investment have been weak in recent months, which has reduced aggregate demand and has hindered a faster recovery. Foreign demand has also been low. The fast control of the virus in China increased expectations of a vigorous economic recovery but confidence among economic agents has not returned easily and the economy is still in a slow process of recovery that will most likely be replicated in the rest of the world. Moreover, a recent COVID-19 outbreak in Pekin has forced the closure of a food market in the capital city and reignited fears of the virus`s reappearance. This Monday, the People`s Bank of China granted up to 200 billion yuan to ensure liquidity in banks but has remained as a moderate stimulus and has concentrated on avoiding a collapse in credit.