Gita Gopinath is Deputy Managing Director of the International Monetary Fund (IMF).

Spoke with Reuters in Davos:

  • "Looking at the infection trends, and if those persist, we could see a very quick recovery starting from after the first quarter of this year,"
  • a growth rate "in the 4%-plus ballpark" would likely mean that any global inflationary pressures would be counter-balanced by the slowdown in demand elsewhere.
  • "But if growth in China comes in much more strongly, which is a possibility, then we could see another spike in oil prices or energy prices,"

Reuters link for more.

Chinese authorities are pumping stimulus in, especially for the ailing property sector. This'll contribute to the bounce back.

Earlier this week we had better-than-expected data from China that gave a boost to growth optimism:

China heads off on a week long holiday from the 21st January, celebrating Lunar New Year.

china lunar new year rabbit