12-21-2022, 04:28 AM
Quote:As Susannah Streeter, an analyst at Hargreaves Lansdown, says: “Mass hospitalisations are likely to prompt a fresh bout of trepidation for consumers and businesses and constrain the Chinese economy further, while the prospect of fresh supply chain snarl-ups could prolong the price pains being felt in countries around the world.” Mark Williams, chief Asia economist for the consultancy Capital Economics, estimates China’s economy will contract by 2.5% this year and expand by 2% next year – a far cry from the double-digit annual growth rates notched up a decade ago. “For the economy, reopening has so far been entirely negative,” he says. “Activity has been depressed for most of the past year as fear of getting forced into quarantine has kept people at home. Fear of quarantine has now given way to fear of infection, and the economic outcome is even worse.”China’s screeching U-turn on Covid will not be an instant fix | China | The Guardian
- Reinforces the stagflationary forces as it creates new supply chain bottlenecks (China is still the factory of the world) as well as China's consumers will be a drag on growth.