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In an exclusive interview with Xinhua News Agency on Wednesday, Martin Raiser, World Bank Country Director for China, said that the country’s economic recovery bettered expectations in the second quarter (Q2), in light of the coronavirus pandemic.

Key quotes

“It is indeed higher than what we had projected back in June when we released our Global Economic Prospects report, and we have upgraded our forecast accordingly.”

“China has benefited from significant policy space in rolling out its fiscal and monetary response.”

“Structural reforms to boost markets and competition would also help to stimulate more private investment and rekindle productivity growth.”

“It will be critical that global trade and investment remain open, countries cooperate in the search for effective treatments and a vaccine against COVID-19, and further steps are taken to cushion the impact of the global recession on the poorest countries, including where needed, through debt relief.”

Market reaction

AUD/USD keeps its consolidative mode intact below 0.7200, as the AUD paid little heed to the upbeat remarks. The spot remains caught between worsening virus situation in Victoria and falling Treasury yields-led dollar weakness.