$KraneShares CSI China Internet ETF(KWEB.US)$ As China relaxes its strict COVID-19 policies, many analysts and economists expect the economy to recover next year.
Tressis Gestión SGIIC chief economist Daniel Lacalle (Daniel Lacalle) predicted on Tuesday on Squawk Box of the US Consumer News and Business Channel (CNBC) that the reopening of the Chinese economy will boost growth in 2023, although he still expects that global growth will be quite weak compared to the years before the outbreak of the pandemic.
On December 27, after news of a reversal in China came out, the price of gold soared to its highest level since late June.
It's unclear if Lacalle's predictions are likely to come true, simply because the country has taken a big step from a zero-COVID policy. In fact, a sudden reversal of its policies could present some serious problems.
China has yet to achieve — and vigorously pursue — high levels of vaccination against the virus among its population, and the recent relaxation of zero-out policies has led to a new wave of patients in the country's hospitals.
According to recent reports from The New York Times and other media, its elderly population has been hit the hardest. Most ominously, there are concerns that China may see COVID-related deaths reach levels in the early stages of the outbreak in more developed markets.
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