‘We Are Not Facing A Single Crisis, But Three,’ Says Hardeep Puri

Although a $23 trillion economy like the U.S. is looking good and has bounced back, there is also a $12-trillion economy like China, where demand is muted due to constant lockdown, the minister said. “What will happen if China revives its growth momentum and the demand for oil goes up?”

“There is clearly an economic issue involved because of China’s appetite for energy,” the minister said. “It imports a fair amount, but at this point in time, its imports are not growing.”

“Just imagine if China starts suddenly to revive the momentum that it has lost due to the severe lockdown policy, the zero Covid, attendance problems on the real estate market.”

“If, for instance, suddenly the demand for oil in China goes up, then it will be a self-fulfilling prophecy in terms of prices going up at a time when the world is already in a recessionary condition,” Puri said.

However, India is an exception, as airports, aircraft, and public transport all continue to work at full capacity with orders across sectors being received, according to Puri. “I think some of it is because people feel very confident and there is growth, which is a very welcome sign.”

But India cannot be the only country in the world, along with the United States, that is doing well, Puri said. Large parts of Africa, Latin America, and Asia all need to be part of that growth story, he said.

“China is a very large part of Asia, and there are some worrying signs there, so if you’re asking whether I’m worried, I’ll continue to be worried,” Puri said.