China on a modest recovery path

EMs still likely to struggle

After one of the worst years in its recent history, we expect China to recover from the housing slump and gradually exit the zero-Covid policy in 2023.

We only expect the recovery to be a modest one as the process of deleveraging among property developers and other players in the real estate sector will continue, putting downward pressure on growth. Beyond China, emerging market economies and their assets continue to be under pressure as long as the Fed's hawkish stance persists. China to gradually reopen in 2023 The year 2022 turned out to be one of the worst for China. Chinese regulator introduces restrictions on listings for certain sectors The housing slump as well as the zero-Covid policy have dampened growth, only rescu...