China's 5% GDP Target at Risk Due to Credit Suisse Scandal

The trauma from the 2008 “Lehman shock” still looms large in the psyches of Asian policymakers. This can be seen by how quickly Credit Suisse’s stumble seemed to transport officials back to the events of 15 years ago.

So far, the “Credit Suisse shock” has been far less cataclysmic. And thankfully so. Unlike Lehman Brothers, the Swiss giant was rescued by UBS AG.

Whether that forced financial marriage will work is anyone’s guess. But Credit Suisse’s troubles, coming on the heels of the Silicon Valley Bank crisis in the U.S., has economists adjusting downward growth prospects for the region.

China will be no exception, as headwinds from the West make Beijing’s 5% gross domestic product target look less and less attainable.

Source : China’s 5% GDP Target at Risk Due to Credit Suisse Scandal