JPM, Credit Suisse expect the COVID spike in China to have minimal impact on GDP By Reuters

© . FILE PHOTO: An electronic display showing China’s GDP indices is seen on a street in Shanghai, China on Oct. 16, 2021. Photo taken Oct. 16, 2021. REUTERS/Aly Song/File Photo () – The recent wave of COVID -19 cases across China are likely to have minimal impact on the country’s GDP this year, two brokers said in their reports, adding that it could hurt demand for some commodities. China reported 2,388 new local cases with confirmed symptoms on March 17, nearly double the number a day earlier, as it battles the worst coronavirus outbreak since the virus first emerged in Wuhan in 2020. Credit Suisse (SIX: ) said in a report late Thursday. it expected a loss of 0.03 to 0.05 percentage point in GDP growth per week from the lockdown, at the current size of the lockdown. Earlier this month, China forecast slower economic growth of around 5.5% this year as domestic headwinds, including a downturn in the country’s massive real estate sector and subdued consumption, dampened its outlook. “We view the recent COVID cases and restrictions in China as a potential demand-side shock that could partially offset the Russia/Ukraine supply-side shock for some commodities,” Credit Suisse economists said. Separately, JPMorgan said it expected 20% of China’s GDP to experience a “severe economic shock” related to its “zero-COVID” policy, but expected it to recover in May and June. The brokerage forecasts China’s full-year GDP growth to be 4.9%, down from its previous estimate of 5.1%. Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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