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China's economic recovery
EconomyChina Economy

China GDP: one-fifth of economy is under lockdown, and analysts expect it to get much worse

  • As daily Covid-19 cases reached a record high on Wednesday, the economic impact appears comparable to when Shanghai endured a citywide lockdown in the spring
  • Surging infections and the government’s unwavering commitment to its zero-Covid strategy have dashed hopes of a fast reopening

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Over one-fifth of China’s total GDP under lockdown amid record Covid surge, new report finds

Over one-fifth of China’s total GDP under lockdown amid record Covid surge, new report finds
Luna Sunin Beijing
With China reporting record numbers of Covid-19 cases, more than a fifth of the country’s gross domestic product (GDP) is now under lockdown – on par with the economic impact of Shanghai’s shutdown in April, according to a new report.

The renewed virus curbs have once again put the spotlight on the delicate balance Beijing is trying to strike between easing its zero-Covid policy to help the economy and reining in new outbreaks across the country.

Some 21.1 per cent of China’s total GDP is now under lockdown, up from 9.5 per cent a month ago, according to a Nomura report published on Thursday.

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Covid-19 cases surged to 31,444 on Wednesday, surpassing the previous high of 29,317 in mid-April, when Shanghai was under a citywide lockdown.

There has been a broad-based deterioration in mobility and business indicators so far in [the fourth quarter]
Nomura

Authorities in megacities Beijing, Shanghai, Guangzhou and Chongqing have all recently tightened restrictions.

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