Economists warn inflation could linger longer than expected as China’s first serious national COVID-19 outbreak slows construction, manufacturing and shipping, and ripples through the global economy.
Beijing also announced on TuesdayAdvertisementBen Jarman, chief economist for Australia at JPMorgan, said the expectation for China to follow a drawn-out sequence of waves followed by shutdowns and reopening didn’t appear to be happening.
With China Australia’s largest trading partner, a fast reboot of its economy would be a positive addition to an otherwise subdued outlook for 2023, and China still has a difficult path to travel heading into the new year. “With consumption across major advanced economies yet to respond to higher interest rates and elevated goods demand, this disruption could see inflation more persistent, at least until demand slows,” she said.