Here are the winners and losers of China’s economic slowdown as it ripples though global markets

China’s economic growth is sputtering, and its effects have rippled into the rest of the global economy with mixed results.

According to a Bank of America note to clients, China is facing headwinds that will set the tone for the US, Europe and Latin America as they respond to currency and commodities markets.

“Short-term factors include China’s zero-Covid strategy, deep problems in the property market and a weak labor market (particularly for young workers),” BofA analysts wrote Friday. “Meanwhile, unfavorable demographics and a low return on investment after years of rapid infrastructure development pose structural challenges to growth.”

China’s economic weakness presents both good and bad news for the US. On the positive side, China’s yuan has weakened about 8% against the dollar over the past year on aggressive Fed rate hikes and expectations the US economy will outperform others around the world.

That will help ease inflation in the US, as research shows that a 10% appreciation in the dollar lowers personal consumption expenditures inflation by about 0.4 percentage points, BofA said.

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