China's economy brakes sharply in Q2, global risks darken outlook

[Scott]

China's economy brakes sharply in Q2, global risks darken outlook

 

A pandemic prevention worker sits next to a vintage car as he scans a man's ID card at a nucleic acid testing station, amid a coronavirus disease (COVID-19) outbreak, in Beijing, China, July 14, 2022.

 

BEIJING, July 15 (Reuters) - China's economic growth slowed sharply in the second quarter, highlighting the colossal toll on activity from widespread COVID lockdowns and pointing to persistent pressure over coming months from a darkening global outlook.

Friday's frail data adds to fears of a global recession as policymakers jack up interest rates to curb soaring inflation, heaping more hardship on consumers and businesses worldwide as they grapple with challenges from the Ukraine war and supply chain disruptions.

Gross domestic product in the April-June quarter grew a tepid 0.4% from a year earlier, official data showed on Friday. That was the worst showing for the world's second-biggest economy since the data series began in 1992, excluding a 6.9% contraction in the first quarter of 2020 due to the initial COVID shock.

https://www.reuters.com/world/china/chinas-q2-gdp-growth-slows-sharply-04-yy-missing-fcast-2022-07-15/

 

[Isaan sailor]

Great time for Thailand to step in and attract western businesses—looking to leave China.  Just let the Baht sink more…

[RichardColeman]

27 minutes ago, Isaan sailor said:

Great time for Thailand to step in and attract western businesses—looking to leave China.  Just let the Baht sink more…

please explain the bit about let the baht sink more - its still way higher than it was 6 months  ago against most other currencies than the $ ! Can't see European companies buying into it knowing the baht is still way too strong. If it dropped say 6 baht to the £ more, I'd agree with you investment may come - as it is, not a flaming chance

[Isaan sailor]

1 hour ago, RichardColeman said:

please explain the bit about let the baht sink more - its still way higher than it was 6 months  ago against most other currencies than the $ ! Can't see European companies buying into it knowing the baht is still way too strong. If it dropped say 6 baht to the £ more, I'd agree with you investment may come - as it is, not a flaming chance

For the USD, the Baht has sunk pretty far, although it has risen a bit in the last few days.  So at least for American countries thinking of relocating here—Thailand stands an outside chance.  Sorry about your Pound.

[The Theory]

As long as interest rate going up every month $US gets stronger. And ฿ getting weak against $ Unless Thai banks do the same, but I don't see that Thai banks can handle higher interest rate. 

Edited July 16, 2022 by The Theory

[Johnnyngai]

Don't worry about them, they are survivors.

100+ years of famine later, they are still doing ok.

Edited July 17, 2022 by Johnnyngai