DGT - Could China Push The World Into Recession?

• The overall global economic slowdown, plus China’s Covid lockdowns, are taking a toll. Apple and GE have warned their distributors about production and delivery problems due to China.
• Another example is falling vehicle sales in April in China for BMW, VW Group, and Tesla. Since China has a massive consumer car market, that is close to “zero” sales, so if the world slips into a recession, it could be due to waning Chinese consumer demand.
• Last week’s inflation news was critical, since any sign of slowing inflation will cause consumers to buy, boosting the “velocity of money,” or how fast money changes hands.

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