PH Hession Enterprise - China’s Recovery May Not Spur Global Economic Growth
PH Hession Enterprise report shows China’s economy will recover this year, but this may not translate to more growth for the global economy.
Taipei City, Taiwan, February 16, 2023 --(PR.com)-- A recent report by Asian-based PH Hession Enterprise has revealed that China’s economy will likely account for a third of global growth in 2023. Analysts at PH Hession Enterprise say that while China’s economy is likely to expand by more than 5 percent this year, after only 3 percent growth last year, the recovery may not help to fuel economic growth around the globe.
In previous times of economic turmoil, China’s economy has been helped by sizeable investment and massive government stimulus to avoid lasting economic downturn. However, this economic recovery will be mostly led by the consumer.
The report revealed that Chinese consumers are eager to return to economic normality. After almost 3 years of covid restrictions and travel bans were brought to a close by the sudden ending of China’s zero covid policy, Chinese citizens have taken to the streets and returned to big cities and shopping spaces.
“Our belief is that the effects of China’s recovery will largely be noticed in China,” says Mr. Chin-Lung Toh, CFO at PH Hession Enterprise. “The strongest rebound is likely to be seen in the services industry, and while this will contribute to global growth it won’t necessarily fuel growth in other countries initially.”
The report stated that while China’s recovery will be good for global growth on the whole, especially with growth in Europe and the US set to slow this year, the nature of the recovery would mean that the US may not be affected at all.
“The US has extremely limited exposure to China’s services industry,” said Mr. Chin-Lung Toh, “It is possible that the reopening of the services sector in China could increase the demand for energy, and cause energy prices to rise even more.”
The International Monetary Fund also predicts that China’s growth will make up a third of global economic expansion this year and predicts that Europe and the United States will comprise just 10 percent.
In previous times of economic turmoil, China’s economy has been helped by sizeable investment and massive government stimulus to avoid lasting economic downturn. However, this economic recovery will be mostly led by the consumer.
The report revealed that Chinese consumers are eager to return to economic normality. After almost 3 years of covid restrictions and travel bans were brought to a close by the sudden ending of China’s zero covid policy, Chinese citizens have taken to the streets and returned to big cities and shopping spaces.
“Our belief is that the effects of China’s recovery will largely be noticed in China,” says Mr. Chin-Lung Toh, CFO at PH Hession Enterprise. “The strongest rebound is likely to be seen in the services industry, and while this will contribute to global growth it won’t necessarily fuel growth in other countries initially.”
The report stated that while China’s recovery will be good for global growth on the whole, especially with growth in Europe and the US set to slow this year, the nature of the recovery would mean that the US may not be affected at all.
“The US has extremely limited exposure to China’s services industry,” said Mr. Chin-Lung Toh, “It is possible that the reopening of the services sector in China could increase the demand for energy, and cause energy prices to rise even more.”
The International Monetary Fund also predicts that China’s growth will make up a third of global economic expansion this year and predicts that Europe and the United States will comprise just 10 percent.
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PH Hession Enterprise
Chung Liao
+88627704554
phhessionenterprise.com
Chung Liao
+88627704554
phhessionenterprise.com
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