What China’s New COVID Lockdown Means For Growth, Recovery
China’s new lockdowns after a recent COVID outbreak could put a severe strain on the world’s economy. The stringent lockdown strategy for outbreaks in at least 17 provinces may mean shutting down residential compounds and the cancellation of public events, which could dampen China’s consumer growth.
The Wall Street Journal on Tuesday noted how over the past week investment banks Goldman Sachs Group and Morgan Stanley cut full-year growth outlooks for China.
“The more transmissible nature of the variant and China’s Covid-zero approach indicate that economic impact is inevitable,” Morgan Stanley economists wrote.
China’s National Health Commission reported 143 new Covid cases, the highest number of daily infections since January. Last week, Chinese authorities imposed city-wide testing in Wuhan and imposed other restrictions in cities such as Beijing. The recent outbreak has cast doubt on the effectiveness of China’s…
