China’s post-pandemic rebound is expected to slow down, raising the need for more stimulus measures to boost activity and consumer confidence.

The country’s economy likely grew 0.5% in the second quarter, with June data expected to show industrial output, retail sales, and investment cooling.

Despite recent official moves to overturn limits, some analysts blame the “scarring effects” of years of stringent COVID policies and regulatory curbs on the property and technology industries.

With uncertainty rising, cautious households and private firms are saving and paying off debt rather than buying or investing.

China’s exports slumped 12.4% in June, the most in three years.