For 2022, the World Bank downgraded China’s growth forecasts sharply from 5.0% (April’s) to just 2.8%. On the other hand, ASEAN-5 growth forecasts was upgraded from 4.9% to 5.4%. East Asia & Pacific (excluding China) growth was upgraded from 4.8% to 5.3%. However, East Asia & Pacific as a whole was down graded from 5.0% to 3.2%,
The World Bank said in the release: “Growth in much of East Asia and the Pacific has been driven by recovery in domestic demand, enabled by a relaxation of COVID-related restrictions, and growth in exports. China, which constitutes around 86% of the region’s output, uses targeted public health measures to contain outbreaks of the virus, inhibiting economic activity.”
Selloff in Yuan is still in force, with USD/CNH approaching 2020 high at 7.1961. There is so far no clear support for the Yuan at 7 psychological level. Break of 7.1961 will mark the highest level for the pair, lowest for offshore Yuan, since 2008. Technically, USD/CNH might top only after hitting 100% projection of 6.3057 to 6.8372 from 6.7159 at 7.2474.