China’s Consumption Conundrum
In the three months since the Chinese government abruptly lifted its far-reaching “zero COVID” policy, the Chinese economy has roared back. For nearly three years, the policy wreaked havoc on Chinese businesses and supply chains, pushing growth down to its lowest level in decades. The chaotic reopening then led to a viral wave that infected an estimated 80 percent of the population but rapidly petered out. With the worst now over and the biggest constraint on the economy lifted, the Chinese government announced a growth target of five percent for 2023.
Although China’s faster-than-expected rebound brought cheers from global markets, despite growing fears of a global recession, that optimism should be tempered.… Seguir leyendo »