Global economy shows new signs of slowdown as it recovers China the post-coronavirus era appears to be on the decline as Germany’s industrial sector struggles and threatens to drag Europe’s largest economy into recession. These shortcomings are emerging as the still robust US economy comes under pressure from worst banking turmoil marked by the outbreak of the financial crisis as well as the impasse on the debt ceiling.

United States Secretary of the Treasury Janet Yellen warned on Tuesday that the time to prevent a catastrophe is running out. Recent data show that the key ingredients leading to global recovery they do not seem to live up to initial expectations. Significantly, the reopening of the Chinese economy after the zero-case policy did not get off to a strong start, and a mild winter was not enough to revive German industrial sector.

“Growth optimism at the beginning of the year has clearly given way to a sense of realism. Or just disappointment, ”says about Karsten Bresky, head of macroeconomic analysis at ING. “China and Europe are already starting to lose momentum again, and with what is happening in USA The second half of the year doesn’t look any better.” According to Hao Hang, chief economist at Grow Investment Group, the data confirms that the opening of the Chinese economy is not boosting demand to the extent we expected.

Persistent industry weaknesses real estate they won’t change the climate much. At the same time, the investor confidence index has been falling for the third month in a row, resurrecting fears of a possible recession. The Zew Institute Business Expectations Index fell to -10.7 in May from -4.1 in April. Ahead of the data, an unexpected fall in industrial production raised concerns that Europe’s largest economy is showing signs of slowing down. With his hand IMF Last month, they revised their estimates of global economic growth this year.

Also on Tuesday, the IMF warned that monetary tightening and high energy prices burden on the German economy. What’s more, he predicts that its growth “will be close to zero in 2023” before it starts to solidify in the next three years.