While price growth is expected to ease in 2023, economic growth is certain to slow sharply alongside rising interest rates, too., down from 3.2% in 2022. The OECD has projected a less lofty performance this year of 2.2% growth, compared with 3.1% in 2022.
The reopening of the world’s second-largest economy — which has slowed dramatically during the last year — should inject new momentum into the global recovery. With the virus spreading rapidly among China's colossal population, some health experts have also expressed concerns about the emergence of new and more dangerous variants.
"The other thing to watch is if there's a major mutation, and mutations can be either less lethal but they could also be more lethal, and I think if the latter happens, and we start seeing closures of borders again, that would be traumatic for investor confidence.
Since its launch under the Trump administration, the US-China trade and tech war has deepened under US President Joe Biden.