$KraneShares CSI China Internet ETF (KWEB.US)$ As China relaxes its strict COVID-19 policy, many analysts and economists expect the economy to recover next year.
Tressis Gestión SGIIC chief economist Daniel Lacalle (Daniel Lacalle) predicted on Tuesday on the US Consumer News and Business Channel (CNBC) Squawk Box that the reopening of the Chinese economy will boost growth in 2023, although he still anticipates that global growth will be quite weak compared to the years before the outbreak of the pandemic.
On December 27, after news of China's reversal 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 away from a zero COVID policy. In fact, a sudden reversal of its policies could present some serious problems.
China has yet to achieve — and is not vigorously pursuing — high levels of vaccination against the virus among its population, and the recent relaxation of the zero-out policy has led to a new wave of patients in the country's hospitals.
According to recent reports in 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 earlier stages of the outbreak in more developed markets.
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