Tuesday, February 7, 2023

Creating liberating content

SpaceX Crew-6 prepares to...

The next crewed mission to the International Space Station (ISS), SpaceX Crew-6 mission with...

Google Chrome will block...

Google has announced that it will prevent millions of PCs from downloading the...

Tax refund update: Is...

Some governments, such as California's Middle-Class Tax Refund (MCTR) program, have offered stimulus...

China continues importing chips...

Despite long-standing American export restrictions, China nuclear weapons development agency has purchased American...
HomeCOVIDChina economy: GDP...

China economy: GDP report to reveal impact of COVID-19 zero policy

The COVID-19 zero policy program was abruptly stopped at the end of last year, and this week’s critical economic data from China are likely to reveal a dramatic slowdown in growth. However, the focus is swiftly shifting to a big recovery in 2023.

The economy suffered from a spike in illnesses in December, and official numbers due out on Tuesday are likely to reveal that activity has fallen to levels similar to those experienced when Shanghai was shut down in the spring of last year.  

China Economy

The median estimate in a Bloomberg survey of economists, gross domestic product growth in the fourth quarter of 2022 fell to 1.6%, which is less than half the rate seen in the third quarter.

According to the study, the full-year GDP probably increased about 2.7% last year, which is far less than the government’s lofty target of approximately 5.5% and just a little bit more than the 2.2% growth recorded in 2020, the year the pandemic first appeared.

In December, major Chinese cities had a substantial decline in mobility due to an increase in COVID-19 cases, according to high-frequency statistics. 

Private surveys revealed a sharp decline in consumer mood after it already reached record lows in earlier months. Increasing unemployment and slower income growth in 2022 have made households cautious with their expenditures.

Read more: President Xi Jinping claims China economy increased; Citizens try to return to normal activity despite COVID-19’s effect

COVID-19 Cases

China-GDP-COVID-19-2023
The Covid Zero program was abruptly stopped at the end of last year, and this week’s critical economic data from China are likely to reveal a dramatic slowdown in growth. However, focus is swiftly shifting to a big recovery in 2023.

In 2022, COVID-19 control efforts caused significant economic damage in China, including complete lockdowns in cities like Shanghai and limits on citizens’ ability to travel and factories’ ability to move their products when infections soared.

Activity fell down a cliff at the end of last year when the Covid zero policy was abruptly abandoned as workers feel unwell and customers stayed home out of fear of getting sick.

In large cities like Beijing and Guangzhou, there are indications that infection waves have peaked and that recent weeks have seen a comeback in activity.

Although some large banks, including Morgan Stanley, Bank of America, and Citigroup Inc., anticipate growth to be closer to 5.5% or higher, the median prediction in a Bloomberg survey of experts is for GDP growth to rise to 4.8% in 2023.

In an effort to prevent over-stimulating an economy moving towards routine operations, the People’s Bank of China held the rate constant on Monday and supplied less money than anticipated to the banking system through policy loans.

Read more: Oil Price drops as China battles surging COVID-19 cases

Get notified whenever we post something new!

spot_img

Create a website from scratch

Just drag and drop elements in a page to get started with Newspaper Theme.

Continue reading

Tax refund update: Is your inflation relief check taxable?

Some governments, such as California's Middle-Class Tax Refund (MCTR) program, have offered stimulus checks. However, experts claim that it is unclear and causes a lot of misunderstanding about whether these are taxable or not. Californians have received MTCR payments, for...

US hospitals remains overcrowded despite a decreasing infection threat

US hospitals remain overcrowded despite a decreased number of patients receiving treatment for respiratory illnesses. Numerous patients at Massachusetts General Hospital in downtown Boston are lined up in the emergency room's hallways as they wait to be assigned an...

Risk of developing anxiety becomes higher due to long-term exposure to polluted air, study reveals

People who reside in extremely polluted areas are more likely to suffer from sadness and anxiety than those who reside in areas with cleaner air. The study, which was published in the journal JAMA Psychiatry on Wednesday, found that persons...

Enjoy exclusive access to all of our content

Get an online subscription and you can unlock any article you come across.