Goldman Sachs economists point out that the regions in China currently experiencing the worst Covid-19 outbreaks are those that account for around 30% of China’s annual national output.
Lockdowns and associated restrictions are weighing on economic activty. Add in weakening overseas demand for China's exports, rocketing commodity prices as Russia's war on Ukraine continues and the deep debt woes in the property sector.
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As I posted earlier, the situation appears much worse than is being admitted:
