There’s No Universal Definition for Recession. Just Ask China
No word should be off-limits to describe the nation’s faltering economy. Linguistic tags, sometimes unflattering, are part of being a major power.
More signs of gloom.
Source: Andrea Verdelli/BloombergThe words “recession” and “China” don’t appear together too often. Though it shouldn’t be such a leap to go from a string of lackluster reports to recognizing a downdraft that requires a harder description than merely a fizzling rebound. No term should be off limits, even for China. Let’s subject economic cycles there to the same scrutiny that befits a superpower.
The latest cause for anxiety came Friday in data that showed a gauge of manufacturing still contracting and an important barometer of services retreat a touch. To alter the bearish view that has taken hold of China's growth prospects, numbers need to start exceeding expectations by a fair margin. The faltering outlook is felt beyond the home front. Countries like Thailand placed enormous stock in an influx of tourists once Beijing lifted the shackles of Covid Zero. That boom hasn’t quite materialized.