MERICS Members Briefing - Economic Indicators: Iran crisis triggers economic shockwaves worldwide

On April 24, MERICS held an online briefing for its Members and key stakeholders on China’s economic trajectory as the first quarter of 2026 drew to a close. Based on the upcoming edition of the MERICS Economic Indicators, our quarterly analysis on China’s economic data, our experts provided the participants with an update on the latest trends and their impact on Europe. 

The war between Iran, the US and Israel has caused economic shockwaves around the world. Despite being better prepared than most countries, the disruption in trade flows also appears to be causing ripple effects in China. In March, producer prices rose for the first time in three years. Chinese exports have also fluctuated to start the year, with year-on-year growth of 21.8 percent in January-February followed by more modest growth of just 2.5 percent in March.

MERICS analysts Alexander Brown and Andreas Mischer dissected the impact so far of geopolitical developments and assessed the outlook for the year ahead.