Amid Covid resurgence and consequent lockdowns, the latest economic data in April  worsened, including value-added industrial output, manufacturing output and retail sales. 

Exports, once a brilliant outperformer in the past two years, only rose 3.9% YoY in April,  the slowest pace since June 2020. Property remained one of the key challenges, and new  loans to the household sector sharply contracted. FAI managed to register growth in 4M22.

With top policymakers maintaining original 2022 economic target, FAI (especially infra), is  likely to become the primary driver to stabilise economic growth. Fiscal policy will likely take  the lead, with the support of possible special sovereign bond on top of local special bonds that set to complete issuance in June. Property relaxation will remain the policy focus, with  magnitude not matching 2014/15 loosening cycle and easing focusing on individual cities.