Financial Insights

China faces it’s worst economic slowdown since the pandemic

According to Nomura, China’s economy is facing it’s worst downward pressure since the covid pandemic in 2020.

Economists had revised their estimates for the growth of the Chinese economy to 4.2% but the existing 2.9% might be better to show the real economic situation on the ground.

The covid cases in China are surging once again as the Omicron variant has forced several of it’s cities into lockdown. Shanghai, China’s biggest city, is set to launch a phased lockdown to curb the growing number of covid cases. The daily infection is hitting new highs as the numbers are similar to the early days of the pandemic.

China’s economy saw a strong start to 2022 as investment, production and spending saw a healthy uptake. However, the country is currently facing one of it’s worst covid-19 outbreaks as several production facilities and offices are being closed to implement virus prevention measures.The chinese yuan, which saw it’s highest rise against the dollar in 4 years, contracted 1%.

While India is openly submitting tenders to purchase Russian crude oil, China is rumored to have discreetly placed orders and purchased heavy amounts of crude oil from Russia.

On saturday, China reported 5600 new covid cases, it’s highest daily number since the pandemic 2 years ago.

Related Articles

Back to top button