China’s reopening may not be enough to change global slowdown

CHINA’S reopening is good news for global economies, but some economists worry it may not be enough to change the slowdown in global growth this year.

Andrew Tilton, chief Asia-Pacific economist at Goldman Sachs, said on Friday (Jan 13) that while the bank continues to forecast below-potential annual average global gross domestic product growth of 2.2 per cent in 2023, it is now above consensus for most major economies.

“Our recent growth upgrades reflect a stronger growth impulse from China’s reopening, European resilience to the energy crisis (given a warmer-than-expected winter), and a US economy that proves resilient to monetary tightening as the impact of rate hikes fades throughout 2023,” Tilton said, adding that the improved global growth outlook has “room to run”.