KPMG's Hunter on China's Economy, Central Bank Policy

The video discusses the economic impact of COVID-19 lockdowns on China's economy, highlighting a potential 12% downside in earnings. It examines liquidity challenges and the slowdown in lending, suggesting a need for fiscal response. The video contrasts China's monetary policy with other Asian countries, where central banks are tightening policies due to inflation. It also explores recession risks in New Zealand and Australia, emphasizing the need for balanced rate rises.

What is one of the main challenges facing China's economy due to the zero COVID policy?

• Rising inflation

• Threat of lockdowns

• Steady economic growth

• Increased foreign investment

What is the expected approach of Chinese authorities to stimulate the economy?

• Reducing taxes

• Direct fiscal spending

• Increased exports

• Monetary tightening

How does China's economic recovery differ from other Asian countries like New Zealand?

• China is experiencing high inflation

• China is still in recovery mode

• China has a higher unemployment rate

• China is tightening monetary policy

What economic condition is New Zealand currently facing that requires policy tightening?

• Low domestic demand

• Decreasing GDP

• High unemployment

• High inflation

What is a potential risk for Australia and New Zealand due to their current economic policies?

• Economic recession

• Increased foreign debt

• Deflation

• Rapid GDP growth