China's cautious consumer confidence is dampening recovery, says ADB
Fears are growing that China's economy is tethering on the verge of deflation after yet another slate of underwhelming economic data July 17 provided more evidence that the stall in growth momentum may turn out more severe without more meaningful policy intervention.
China's cautious consumer confidence has been a "a dampener" for its fragile recovery, according to Albert Park, chief economist at the Asian Development Bank.
On Monday, the world's second largest economy reported second quarter GDP numbers that largely missed expectations.
China's economy grew 6.3% from a year ago in the quarter ending June, while retail sales for June rose by 3.1%, fueling concerns its post-Covid growth is faltering.
"What we really hope is that China's consumers and businesses will regain confidence to start spending more and to invest more," Park told CNBC's "Squawk Box Asia" on Wednesday.
"We're seeing their caution in this respect really being a dampener that's causing the sluggish recovery in China."
Source: CNBC
