Can Chinese demand cushion blow of US recession on Asian economies?
Jerome Powell, chairman of the US Federal Reserve, speaks during a news conference following a Federal Open Market Committee meeting in Washington DC on June 15. EPA-YonhapChina is expected to pick up steam in coming months: HSBC economistBy Kim Bo-eunHONG KONG ― Record-high inflation, aggressive rate hikes and stock market chaos have stoked concern that the U.S. economy could slip into recession, causing a growth slump in other parts of the world.In Asia, eyes are also fixed on China, with some wondering whether the world's No. 2 economy will be able to act as a buffer against a potential contraction in the U.S.China has a significantly lower rate of inflation than the U.S. and “prudent” economic policy during the first two years of the pandemic has given Beijing room to roll out targeted support for the economy. While numerous headwinds remain, the easing of coronavirus restrictions after months of lockdowns in major cities like Shanghai, coupled with new stimulus measures, have buoyed hopes among some analysts that the worst might be over.“China is likely past it
