Is the centre of gravity shifting in the world economy? Revised forecasts from the World Bank reported in the Guardian suggest that China, the world’s second-largest economy, is projected to grow by only 2.8 percent in 2022 and 4.5 percent in 2023.

China accounts for 86% of GDP in the Asia-Pacific region but their growth rate is set to lag the region for the first time in more than thirty years. This Guardian article provides some background.

Persistent covid-related production lockdowns have hit domestic consumption and manufacturing output.

We are seeing more frequent stories of transnational companies opting to re-locate production – for example Apple’s decision to switch iPhone assembly to Vietnam and India.

The perennial questions of “will China grow old before she grows rich?” and “can China escape the middle-income trap?” remain!