MACROECONOMICS

China's "post-reopening" economy and the impact of geopolitical risks

Investors turn their backs on the economy amid deflationary phase and escalating geopolitical risks

Investors, especially from Europe, who had bet on economic recovery after China reopened, have been completely disappointed with this country's macroeconomic data from last week. Geopolitical risks related to China are making investors even more hesitant. 

It must be emphasized that previously, many parties predicted that China's economic reopening would ease the burden on global inflation as import commodity prices fall. Or China's trade reopening could boost trade to avert a global recession this year.  

However, all economic data indicate cooling demand in China's domestic market. Pessimistic export data also signals that post-reopening China may offer no help to a global economy heading toward recession. Meanwhile, China itself faces a massive frozen real estate market that has yet to recover.

Returning to China this time, Viet Hustler will provide the latest information on the macroeconomic and geopolitical situation of the world's second-largest economy, along with assessments in the conclusion below.

Economy stagnating with many latent risks

Deflation risk for China 

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