Nordea first:
According to the official numbers, China’s GDP increased 4.8% y/y in Q1 but the short-term economic outlook is severely hurt by Omicron and the political risks are making their way back to the center of discussion.
The first four months of 2022 have been full of important turnarounds in China and much has happened since our previous note on the Chinese economy (here). After the National People’s Congress set the growth target high at about 5.5% in the beginning of March, the short-term outlook has been severely weakened by Omicron. In the international fora, China’s stance on the Russia’s war in Ukraine has been one of the most discussed topics and even led to some speculation on possible Western sanctions on China as well as on China’s role in the international financial markets.
