The European economy is projected to continue to see moderate recovery, mainly on the back of improvement in the employment and income situation, as well as accommodative financial conditions. The Chinese economy has continued to be in a state of deceleration due to downward pressure from an overhang of production capacities and inventory adjustments in the manufacturing sector.
However, the economy is likely to broadly follow a stable growth path – albeit at a somewhat slower pace, mainly in the manufacturing sector – as authorities proactively carry out policy measures to support economic activity.