Covid exit waves cause widespread disruption in China

Pantheon Macroeconomics with the note:

Key Points:

The enormous Covid exit waves are causing wide-reaching short-term disruption to China.
The PMI readings are generally worse than Q2 2022, but better than February 2020.
China’s economy should benefit from reopening in Q2 onwards, offsetting weak exports.

China’s PMIs Take a Short-Term Blow from Covid Exit Waves

China is being rocked by a huge wave of Covid infections sweeping through the economy, as local governments loosen restrictions and ordinary people increasingly resign themselves to catching the virus.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.