It sounds really good when you hear, “The Chinese economy is now operating at 90%,” but in practice that 90% capacity shines a light on the economic uncertainty moving forward. Even with the Chinese economy opening up, consumer spending has only recovered to about half of previous levels. Global unemployment is still extremely high, and even when businesses open up, the new social-distancing guidelines create a drag on the true economic rebound. As economies open up from lockdown, it can be argued that we will start to see further negative economic effects if consumer spending remains low and governemnt subsidies end. The Economist created an excellent video covering this, and I encourage you to take a look at it. To view the video, please click HERE.
