China Is a Lone, Feeble Dove in a World of Hawks
Don’t expect Beijing’s stimulus to lift the global economy when major central banks are moving in the opposite direction.
It’s cold out there.
Photographer: Jayendrakumar Patel/EyeEm via Getty Images
The qualifiers keep coming for the global recovery. Cuts to growth projections arrive almost weekly and recession warnings are starting to multiply. A slump isn't yet the base case, but it sure would be nice if China could lend a hand.
That doesn't look likely. While China's gross domestic product rose more than forecast in the first quarter, up 4.8%, the collapse in consumer spending during March suggests lockdowns in Shanghai and other major cities will extract a large toll. Data also show investment slowed and unemployment climbed. Traditionally, a cushion for challenging times in the U.S. and Europe, China is in Covid-19 purgatory.