Coronavirus: China’s Delta outbreak forces economists to rethink 2021 GDP growth forecasts, as trade expos cancelled
- The highly-infectious coronavirus mutation is forcing economists to re-evaluate China’s economic growth outlook for the year
- The warnings reflect growing concern that China’s zero-tolerance approach to the virus could cause more economic harm than good
More economists have moved to slash their economic outlook for China as the Delta variant spreads across the world’s second biggest economy, forcing the closure of restaurants and entertainment venues and the cancellation of numerous high-profile trade events.
“This wave of outbreaks has significantly increased the downward pressure on the economy,” Liang Zhonghua, chief macro analyst at Haitong Securities, said in a note on Sunday.
Analysts from ANZ Research said on Tuesday they were likely to revise down this year’s gross domestic product (GDP) growth forecast from 8.8 per cent if strict control measures continued into September.
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Mass Covid-19 testing under way across China amid rising infections fuelled by Delta variant
A severe Delta outbreak and long-lasting lockdowns like those seen at the beginning of 2020 could subtract 12 per cent from the level of the country’s GDP in the third quarter, or 3 per cent from annual GDP output, Standard Chartered economists said in a note on Monday.