China's slow economic recovery expected to challenge Asia

Construction workers work amid sections of rebar at a construction site in the central business district in Beijing, China, June 13, 2023. [AP Photo]

China's recent economic slowdown will have a negative but limited impact on the rest of Asia this year as China struggles to recover from the impact of the global pandemic and strict Covid zero restrictions throughout 2022, according to analysts.

Beijing has set a modest 5% growth target for the country this year as it recovers from a sharp drop last year because of the Covid restrictions, but even that may be a challenge because of problems across its economy, said Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis, a French investment bank.