1) Morgan Stanley sees 2022 economic growth at 2.9%
Morgan Stanley sees 2022 global growth at 2.9%, about 40bp below consensus and much lower than the 6.2% growth in 2021. The firm stated that the deceleration of the global economy is due to a persistent inflation and supply stocks, which will weigh on the global growth to expand below the pre-Covid trend.
2) US could drop tariffs against China to ease inflation
The U.S. President Joe Biden said that the White House is reviewing tariffs imposed against China during former President Donald Trump’s tenure and could potentially drop tariffs even lower.
The president added that easing prices is his top domestic priority as the country is expecting an inflation rate at 8.1% in April, dropping from 8.5% from a month prior, but still at a 40-year high.
3) WHO says China’s zero-Covid policy is not sustainable
The World Health Organization (WHO) said that China’s zero-Covid policy is not sustainable considering the behaviour of the virus.
The organization also stated that the impact of a zero-Covid policy on human rights also needs to be taken into consideration alongside the effect on a country’s economy from any Covid policy.