Business Leaders Express Hope as China Reopens, Suggesting No Recession Is Imminent

After months of pessimism among business leaders concerning the probability of a recession, optimism is now growing due to China’s decreased Covid-19 restrictions. Laura Cha, chair of Hong Kong Exchanges and Clearing, claimed that this would be a major source of growth at the World Economic Forum in Switzerland. This sentiment was echoed by Douglas Peterson, CEO of S&P Global, who believes the global economy could benefit from pent-up savings and demand in China.

Although Europe and the US are forecasted to experience an economic downturn this year, Liu He, China’s Vice Premier, offered reassurance that their recovery should begin by 2023. His keynote speech at Davos also highlighted how Chinese citizens have pent-up savings and demand which should lead to an increase in consumption when restrictions ease further. Ultimately, these efforts may help the global economy produce net growth during 2021.