Covid-19 cases are rising in China but economic impact seen as ‘limited’
- Percentage of people testing positive rose to 1.7 per cent on April 20 – up from 0.7 per cent three weeks earlier
- Experts say it’s unclear how serious outbreak will be but it’s unlikely to have a major impact on the economic recovery
The percentage of people testing positive on PCR tests rose to 1.7 per cent on April 20, according to the Chinese Centre for Disease Control and Prevention. That was up from 1.3 per cent a week earlier and 0.7 per cent three weeks earlier.
Experts say it is not clear how serious the latest wave of cases will be, but that it is unlikely to have a major impact on the country’s economic recovery in the coming months.
“Considering the several waves of infections experienced in Europe and the US after they eased Covid-related restrictions, the impact on [China’s] economy will be limited,” according to Larry Hu, chief China economist at Macquarie Capital.
Wang Dan, chief economist at Hang Seng Bank China, said a new wave of cases could have an economic impact, but there would not be lockdowns in response and it would not affect manufacturing.
“It’s mostly down to the global economic performance, which will likely enter a deeper recession after summer,” she said.
“Domestic manufacturing capacity is unlikely to be affected much by Covid. Consumer sentiment will be affected but I don’t think it’s the pillar of China’s recovery,” she said. “Growth largely depends on how housing and manufacturing fares, and neither has much to do with Covid.”