China's lockdowns due to Covid surge could threaten half of economy
As cases jump elsewhere, half of China’s GDP and population will be impacted by the latest outbreak, according to economists at Australia & New Zealand Banking Group Ltd. Bloomberg Economics said in a recent note that as of March 9, 14 provinces had high or medium-risk regions, accounting for 54.4% of national GDP.
“More cities may follow the practice of Shenzhen,” said Raymond Yeung, chief economist for Greater China at $ANZ Group Holdings Ltd(ANZ.AU$ , in a note Monday, noting the city’s decision to shut down public transportation and prevent people from leaving or entering. “If the lockdown is extended, China’s economic growth will be significantly affected.”
While Yeung said $ANZ Group Holdings Ltd(ANZ.AU$ is not yet revising its forecast for 2022, they are “wary” of further restrictions. ANZ forecasts GDP growth of 5% for the year, less than the government’s target of about 5.5%.
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