Chinese recovery to be an inflationary force – Danske Bank – by eren_fxstreet China Macroeconomics Inflation Growth Banks
"A Chinese recovery will have a positive spill-over to the global economy but also be an inflationary force through its' effect on commodity prices," Danske Bank analysts said."As seen in other countries, reopening of the economy is set to unleash pent-up demand. In China, both services and goods consumption has been depressed over the past year due to the cloud of uncertainty from the zero-covid policy and we look for a rebound in both types of spending.
"We also look for improving business confidence to drive a turn higher in private investments. The government has vowed to support the private sector in 2023, which could entail more positive measures and signals to underpin private investments, not least in the tech sector and manufacturing." If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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