Bank of Japan Governor Haruhiko Kuroda cited the resurgence of virus cases in China as putting downward pressure on the global economy, while Taiwan listed the spread of COVID-19 in China as one big uncertainty facing its economy. But equally, those inflationary pressures could be cancelled out if China's woes led to softer global demand for commodities. The New York Fed's Global Supply Chain Pressure Index, launched about a year ago, already edged higher in October and November in a moderate reversal of a persistent loosening of global supply bottlenecks seen through most of 2022. Much will depend on the policy response of Chinese leaders who have pledged to support the slowing economy and to cushion the impact of rising COVID-19 infections. The World Bank now sees China's economy growing 2.7% this year and 4.3% in 2023, somewhat slower than its September forecasts of 2.8% and 4.5%, respectively.

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