Fitch Rating expects a modest recovery in China’s retail sales in 2023, as our base case of less severe Covid-19 pandemic-related controls is likely to underpin a pick-up in discretionary spending. However, the pace of recovery may be slow and volatile, given that our base case assumes many restrictions will remain in place for most of next year. Our base case forecasts mid-single-digit growth in retail sales in 2023, up modestly from a low base in 2022, which was heavily affected by ongoing pandemic restrictions and testing requirements under China’s “dynamic zero-Covid” strategy, most notably in 2Q22. The rebound ... (full story)