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China’s economy unlikely to move in ‘highest gear’ amid COVID outbreaks

Annie |
Has been updated:
November 24, 2022 11:00 IST

Tokyo [Japan], Nov 24 (ANI): China’s economy is unlikely to shift to “highest gear in the short term” amid the COVID-19 outbreak, The Japan Times reported. This is despite China being the last major country not to treat COVID-19 as endemic.
According to news reports, the Chinese economy could emerge from isolation in 2023. But many businesses in China, especially customer-facing ones, fear they won’t survive until next year as China is still battling some issues. Biggest outbreak.
If China re-enters global markets in 2023, the Chinese economy could bounce back from a decades-long slowdown and the outlook for a global recession in 2023 could decline, The Japan Times reported. But that expectation stands in stark contrast to the economic realities happening in China.
In particular, China is adhering to strict COVID policies that include mass testing, lockdowns and travel restrictions to reduce the number of coronavirus cases. China’s economy is expected to reach around 3% in 2022, which indicates it will fall short of its target of around 5.5%.
China’s exports fell, inflation slowed, new bank lending slumped, property market stagnation accelerated, and retail sales fell from April to May, according to a news report, according to October economic data. It decreased for the first time since the blockade of Shanghai over the last three years.

The Japan Times reports that the culinary tourism business of Brian Bergey and his wife Ruixi Hu has been affected in China due to COVID-19 restrictions. He said “Their Lost Plate Company,” which has organized food tours in several cities in China since 2015, will move to Southeast Asia.
Camden Hauge, a Shanghai-based American entrepreneur who owns cafes, bars, several matcha kiosks and an event company in the city, said, “In February and March, I really wanted to get through the winter. It’s the most important thing to see people who can do it,” he said. Hauge also said people aren’t going to “flip a switch” and go back to their old lives.
Earlier this month, JP Morgan estimated that cities with 10 or more new COVID-19 cases accounted for 780 million people and 62.2% of GDP. Vaccination and booster rates remain low in China, especially among vulnerable populations.
Local authorities have eased restrictions in some Chinese cities and imposed stricter measures in others. Analysts at Gavekal Dragonomics say new measures to “optimize” COVID containment appear to be causing confusion as local governments try to interpret the policies. The issue, according to news reports, shows the Chinese authorities’ failure to put the interests of their customers first.
According to social media posts, many parents are keeping their children out of school because of toothaches or ear infections for fear they will contract COVID-19. Economists don’t think these families will be heading out for shopping or dinner anytime soon.



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