ING: Infrastructure will replace real estate as a driver of China’s economic recovery

A recovery in China's economy this year looks certain, but the nature and speed of that recovery remain in doubt, according to ING. After a slow start, the economy could pick up in the summer, but there is a risk that the economy will start to overheat by year-end.

Infrastructure investment will be the second-largest driver of China's economic growth this year, replacing real estate as the engine of investment growth. One reason for this is the government's desire to ensure a smooth recovery of the economy after reopening, and another is the limited infrastructure spending during the past few years, apart from that associated with COVID-19.

The firm expects more interprovincial infrastructure and soft infrastructure, including science and technology development, to take place in 2023.

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