Chinese economy continues to face pressure due to COVID, Russia-Ukraine conflict
May 19, 2022
Beijing [China], May 19 : Chinese economy is under pressure due to stringent curbs to curtail the COVID pandemic, which is adversely affecting production capacity and other logistics.
Aside from the disruptions 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 registered a growth of 3.9 per cent on a yearly basis in April 2022, marking the lowest growth since July 2020, The Singapore Post reported citing data released by Chinese customs.
Investment management Morgan Stanley has forecast that global economic growth would be less than half of 2021 due to the Russia-Ukraine conflict and the surge of Covid-19 in China.
Global growth in 2022 is likely to be subdued at 2.9 per cent this year as against 6.2 per cent last year.
The International Monetary Fund (IMF), on the other hand, expects a GDP growth of 4.4 per cent and 5.1 per cent in 2022 and 2023 respectively as against about an estimated 8.1 per cent in 2021.
On Wednesday, US Treasury Secretary Janet Yellen said that lockdowns in China appear to be impeding the flow of goods and hampering global supply chains.
Addressing a presser in Bonn, where she will be meeting with top finance officials from G7 countries, Yellen even underlined the broader slowdown in growth in China could have global spillover effects.
She said some of the COVID pressures may be mitigating, but the developments in China exacerbate those supply-chain pressures.
