China experiencing ‘pretty solid V-shaped recovery’, says BHP Group CEO
After the unexpected fall in global economic activity as the result of the Covid-19 pandemic, BHP Group
CEO Mike Henry believes there could be a recovery on the verge of emerging, although it will take a
couple of years.
“We’re expecting there’s going to be a sharp contraction in the global economy over this calendar year.
We then expect there to be a pretty sharp uptick again next year, so we foresee it taking about a year
for the world to get back to the levels of economic activity that existed pre-Covid, and maybe two or
three years for the world to get back fully on the track that it would have been on if not for for Covid-
19,” Henry said Wednesday on CNBC’s “Squawk on the Street
As the largest miner in the world, BHP is heavily exposed to economic success. A favorable spot for them
is China, where Henry said a “pretty solid V-shaped recovery” is in the making.
On Monday spot iron ore prices surged to their highest level since 2014, while an infrastructure boom in
China took place, according to commodity price reporting agency Argus, as reported by CNBC.