China F&A Monthly: May 2020
With China’s Q1 GDP shrinking by 6.8% YOY, Covid-19 has sent China’s economy into the first YOY contraction in decades. China is well ahead in controlling the virus situation, with domestic production gradually recovering since March, though still below long-term potential.
Download the full report
Lower disposable incomes and lingering concerns over safety sent domestic tourist arrivals tumbling by 40% YOY during the May holiday – the first long holiday after the lift of the lockdown. Overseas economic activities have yet to pick up, and supply chains have yet to normalize, which will weigh on China’s economic recovery. Weaker external demand will prolong the recovery of China's farm input exports, as well as animal protein and dairy imports. The market is awaiting more tangible stimulus policies while corporations continue with product portfolio adjustments, more proactive pursuit of digitalization strategies, and aggressive promotions to lure back consumer demand.
Download previous editions
Unlock all content
Where to go from here
Ping ChewHead of RaboResearch Food & Agribusiness - Asia Read more
Sandy ChenSenior Analyst - Dairy
Chenjun PanSenior Analyst - Animal Protein Read more
Lief ChiangAnalyst - Grains & Oilseeds
Jingyan SunAnalyst - Farm Inputs
Stacie WanAnalyst – Supply Chains and Beverages
Michelle HuangAnalyst – Consumer Foods Read more