According to experts, the effects of the strict corona measures in China are more serious than expected. The figures for April reveal the damage caused by strict lockdowns.
The strict restrictions imposed by China’s zero-Covid strategy are slowing down the second-largest economy more than expected.
Industrial production fell surprisingly in April by 2.9 percent compared to the same period last year, as reported by the statistics office in Beijing. Retail sales also fell more sharply than analysts had predicted, by as much as 11.1 percent.
“The Covid outbreak in April had a major impact on the economy, but the consequences will be short-term,” said Bureau of Statistics spokesman Fu Linghui. The long-term fundamentals of the Chinese economy are unchanged. If the Covid controls make progress and the policies to stabilize the economy show their effect, a gradual recovery can be expected.
According to experts, however, the figures for April indicate that the downturn this year will be stronger than expected. “The data for activity in April has revealed the damage caused by the lockdowns in Shanghai and other parts of the country,” said an analysis by the finance agency Bloomberg. “The effects are much broader and deeper than expected.”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
