Zero-Covid lockdowns weigh on China’s economy Business

The consensus among economists is that GDP growth will be 5% in 2022, as the economy grapples with geopolitical tensions, heightened global inflationary pressures and slowing external demand.

The decline in consumer spending is only partly due to the fact that households have been forced to stay at home. A shortage of truckers and other logistical problems have also caused delays in deliveries.

China has said only three elderly people have died of the coronavirus in Shanghai since the restrictions were introduced.

Beijing officials insist the zero Covid policy has prevented many deaths. Around 25,000 people are reported to be infected in Shanghai every day, meaning many residents are now confined to their homes until further notice.

China’s unemployment figures have sparked concern among economists as the jobless rate jumped to 5.8%, its highest level since May 2020.

Liu Peiqian of NatWest Group said, “I’m worried about jobs because it’s one of the government’s main goals. The surge in the unemployment rate will have an impact on the economy in the longer term, as employment supports activities, from production to consumption.

Officials admitted that unemployment generally falls rather than rises in March after the Chinese New Year holiday.

But Fu Linghui, spokesman for the National Bureau of Statistics, said the pressure on employment had increased in the past month due to the Covid epidemic, which has hit the service industry hard and restricted industrial production. In certain regions.

Larry Hu of the Macquarie Group said: “Overall growth of 4.8% is not bad, but indicators including the unemployment rate deteriorated a lot in March. They are expected to weaken further in April, so China’s economy is still going through a tough time.”