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The Chinese economy is likely to return to trend growth after its V-shaped recovery saw a record pace of expansion last quarter, Goldman Sachs economists wrote in their latest client note released on Tuesday.

Key quotes (via Bloomberg)

“The economy appears to have passed a turning point.”

“Policy focus has also shifted from helping the economy heal from the COVID-19 downturn to addressing long-term stability and growth issues.”

“Compared to 2019 to avoid distortions from last year’s activity collapse, exports and property sales are clear outperformers, while housing starts and manufacturing investment underperformed.”

“With meaningful slack remaining, household consumption should play catch-up, but probably at a measured pace given the weight of uncertainties and the long way toward herd immunity.”

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