- 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.
For further details see:
Could China Push The World Into Recession?