China’s economy continues to be under pressure due to the Covid crisis and Ukraine
China’s economy is under pressure due to strict restrictions to curb the COVID pandemic, which is negatively affecting production capacity and other logistics.
Besides the disruption caused by the zero covid policy, the war in Ukraine is adding to the woes of the world’s second largest economy.
China’s exports grew 3.9% on an annual basis in April 2022, marking the weakest growth since July 2020, the Singapore Post reported citing data released by China Customs.
Investment management Morgan Stanley forecast global economic growth to be lower in mid-2021 due to the Russia-Ukraine conflict and the resurgence of Covid-19 in China.
Global growth in 2022 is expected to moderate to 2.9% this year from 6.2% last year.
The International Monetary Fund (IMF), meanwhile, forecasts GDP growth of 4.4% and 5.1% in 2022 and 2023 respectively compared to around 8.1% in 2021.
On Wednesday, US Treasury Secretary Janet Yellen said lockdowns in China appear to be hampering the movement of goods and hampering global supply chains.
Speaking to a presser in Bonn, where she will meet senior finance officials from G7 countries, Yellen even pointed out that the broader growth slowdown in China could have global spillovers.
She said some of the COVID-related pressures may be easing, but developments in China are exacerbating those supply chain pressures.
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