Analysts predict the Chinese economy will not recover quickly from the latest wave of the Covid-19 outbreak.
When the epidemic first hit in 2020, China bounced back from a first -quarter contraction to grow in the second quarter. This year, the country has faced an Omicron variant, witnessing weaker economic growth and a lack of stimulus assistance by the government.
The new wave of Covid-19 starting in March has led to closures at Shanghai’s largest financial hub and trade center and about a week ago the city announced plans to reopen the blockade completely in June.
However, analysts see the road to recovery is likely to be slow and turbulent as Covid-19’s zero policy and Beijing begin to record high infection case numbers.
The most notable effect seen from the resurgence of the epidemic was disrupting the normal policy -making schedule as it emerged after the central government released its annual economic plan at a parliamentary meeting in March.
In China’s well -managed economy, these annual meetings are an important part of the cycle for developing and implementing national policies.
Meanwhile, the economic recovery may also slow due to lack of stimulus from the government. Although almost two months after Shanghai underwent a tight closure, but so far only half of the stimulus has been implemented by the government compared to 2020.
If China’s recovery proves to be as slow as analysts predicted, it is clear that it is not positive for the global economy.
