Strong Signals Driving the Global Economy: China’s Gold, Switzerland’s Growth, and Europe’s Recovery:
This week witnessed a series of notable economic developments,
Most prominently, discovering a massive gold mine in China could reshape the metals market.
There was also stronger-than-expected economic performance
in Switzerland and a clear slowdown in the contraction of the Eurozone’s industrial sector.
These concurrent signals reflect significant shifts in the global economic landscape.
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Discovery of a massive gold mine in China that could become the world’s largest
In a move that may boost China’s standing in the global resource race,
Geological experts have discovered one of the world’s largest potential
gold deposits in the “Wangu” mine in Pingjiang County.
According to official media, the exploration team identified over 40 gold veins at a depth of 6,600 feet,
estimated to contain about 330 tons of gold ore.
However, 3D analysis revealed a potential of up to 1,100 tons of gold at nearly 9,800 feet underground,
bringing the estimated value to around $83 billion.
What makes this discovery unique is the high gold concentration in the ore,
reaching 138 grams per metric ton — a scarce figure in mining.
If these estimates are confirmed, the “Wangu” mine would surpass South Africa’s “South Deep” mine,
Currently considered the world’s largest, with reserves of 1,025 tons.
This development comes at a sensitive time as the U.S.-China competition for strategic resources,
scarce metals, intensifies. Due to high consumption,
China is already the world’s largest gold producer and importer,
making such a discovery a potential game-changer for its economic security.
The announcement is expected to directly impact global gold markets,
especially as gold prices continue to rise amid geopolitical tensions and inflation concerns.
Switzerland’s GDP exceeds expectations with 2% annual growth in Q1 2025
Official data released by the Swiss Federal Statistical Office (SECO)
On Monday, the Swiss economy performed better than expected in Q1 2025, with strong annual growth.
The data revealed that Switzerland’s GDP grew by 2% year-on-year,
surpassing the forecast of 1.5%.
The previous Q4 2024 reading was revised from 1.5% to 1.6%.
Quarter-on-quarter growth slowed to 0.5% compared to 0.3% in Q4 2024 (revised from 0.2%),
but still exceeded market expectations of 0.4%.
Eurozone industrial contraction slows to its lowest pace in nearly 3 years amid improved output and orders.
Eurozone industrial activity saw a slowdown in the pace of contraction in May,
reaching its lowest level in 33 months, supported by increased production
and a near stabilization in new orders after almost two years of continuous decline.
According to final data from the S&P Global survey,
the Manufacturing PMI rose to 49.4 points in May from 49.0 in April,
still below the 50-point threshold that separates growth from contraction.
The sub-index for industrial production rose for the third consecutive month to 51.5,
indicating improved manufacturing conditions.
Layoffs also eased, with the employment index falling to its lowest since September 2023.
Among the major Eurozone economies, the survey showed Germany’s industrial activity fell to 48.3,
It’s lowest in two months, while France’s index rose to 49.8, its highest in 28 months.
Strong Signals Driving the Global Economy