News

China’s Zero COVID Strategy Adds Strains to Supply Chains and Global Economy

0
A medical mask and money. Pandemic and the economic crisis of the concept. Soft focus.

China’s fresh Covid-19 lockdowns are placing the economy under constraints and disrupting global supply chains, pushing Beijing to request more contingency plans.

Source: National Bureau of Statistics of China

CSI 300 Index down -0.74%, CNY USD up +0.08%

Purchasing managers’ indexes for March indicated that lockdowns in the technology and trade center Shenzhen and automotive city Changchun hampered factory output in the month.

The services sector in China has been hampered as restaurants and retail establishments close because of fresh restrictions and tightened social distancing rules.

Supply chain constraints are increasing as Shanghai struggles with mounting infections. Covid restrictions in the city are affecting operations and reducing the efficiency at the port.

Ting Lu, an economist at Nomura Holdings Inc., stated that Beijing’s determination to maintain the Zero Covid strategy to fight the infectious omicron variant that is likely to have a severe impact on China’s economy.

The worsening economic situation places pressure on policymakers to intensify fiscal and monetary support.

 

fxcoach

Washington State Adopts Blockchain Technology Law Across Sectors  

Previous article

Euro Area Unemployment Falls to an All-time Low 6.8% in February

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in News