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China's move to growth has global implications

China's move to growth has global implications

created Forex ClubJanuary 17 2023

China's economic growth fell to just 3% last year, nearly half of the 5,5% projected by the government. These poor performances prompted authorities to abandon a three-year zero covid policy and shift to growth by rapidly reopening the world's second largest economy. This gives a global boost to the economy – from commodities to European equities.

READ: The Chinese real estate market - everything you need to know about it

Hope in China's recovery?

Reopening of the Chinese economy and December resilience retail sales and industrial production give hope that the rebound in 2023 will be stronger than expected. The economy is projected to grow by 5% this year, making it the only major economy in the world that could accelerate this year.

This would constitute a large insurance policy against global recession, would act as wind in the sails for stocks exposed to Chinese growth from HSBC to Rio Tinto. At the same time, it would be an impulse for goods of which China is the largest buyer.

About the authorBen Laidler

Ben Laidler - global markets strategist in eToro. A capital investment manager with 25 years of experience in the financial industry, e.g. at JP Morgan, UBS and Rothschild, including over 10 years as a #1 investment strategist Institutional Investor Survey. Ben was CEO of the independent research firm Tower Hudson in London and previously Global Equity Strategist, Global Head of Sector Research and Head of Americas Research at HSBC in New York. He is a graduate of LSE and Cambridge University, and a member of the Institute of Investment Management & Research (AIIMR).

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Forex Club
Forex Club is one of the largest and oldest Polish investment portals - forex and trading tools. It is an original project launched in 2008 and a recognizable brand focused on the currency market.