TLDR: The World Bank and the IMF cut their forecasts for global economic growth this year overnight, warning that China’s lockdowns, Russia’s invasion of Ukraine and higher private debt would drag GDP growth this year around one percentage point more than expected to around 3.2%.
China continued to cling to its zero Covid policy over the weekend, extending Shanghai’s lockdown into a fourth week and imposing curbs in cities generating almost 40% of GDP. Officials reported a 3.5% fall in Chinese retail sales in March, which took the glow off a better-than-expected 4.8% GDP growth figure for the first quarter.
Coming up today, watch out here at 8am this morning for the release of an interview Reserve Bank Governor Adrian Orr gave the IMF on “Tackling Inflation during Uncertain Times” after last Wednesday’s 50 bps rate hike.
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