A piece published by the IMF overnight on what they see in China.

But, its not all positives:

  • COVID-19 pandemic has pushed the world into a recession
  • For 2020 it will be worse than the global financial crisis
  • The economic damage is mounting across all countries, tracking the sharp rise in new infections and containment measures put in place by governments.
  • Italy, Spain, and France are now in acute phases of the epidemic, followed by the United States where the number of active cases is growing rapidly. In many emerging market and developing economies, the epidemic appears to be just beginning.

For China:

  • The modest improvement in economic activity in China is reflected in daily satellite data on nitrogen dioxide concentrations in the local atmosphere-a proxy for industrial and transport activity (but also the density of pollution as a by-product of fossil fuel consumption). After a steep decline from January to February during the acute phase of the pandemic, concentrations have increased as new infections have fallen, allowing China to gradually relax its strict containment measures.
A piece published by the IMF overnight on what they see in China.

A China recovery augurs well for China-proxy trades, such as Australia.