The "zero Covid" policy weighs heavily on Chinese industry - Business

The “zero Covid” policy weighs heavily on Chinese industry – Business

The health of Chinese industry unexpectedly deteriorated in July due to strict coronavirus control measures, coupled with the authorities’ “zero Covid” policy.

The purchasing managers’ index (PMI index) fell from 50.2 to 49 points, the Chinese statistics agency reported on Sunday. An index below 50 indicates a contraction in industrial activity.

As the rest of the world tries to live with the coronavirus, China continues to pursue its zero-tolerance policy to stop new outbreaks of the outbreak. On Wednesday, the government placed a million people in lockdown in Wuhan after multiple infections.

Economic recovery is suffering heavily from these strict measures, which have proven to be less effective against the omicron variant. In the second quarter, the world’s second largest economy grew by 0.4% compared to the same period last year. This is the weakest growth in gross domestic product since the start of the pandemic. The government had forecast 5.5% growth for this year, which does not seem realistic. Instead, experts expect around 4%.

The purchasing managers’ index (PMI index) fell from 50.2 to 49 points, the Chinese statistics agency reported on Sunday. An index below 50 indicates a contraction in industrial activity. As the rest of the world tries to live with the coronavirus, China continues to pursue its zero-tolerance policy to stop new outbreaks of the epidemic. On Wednesday, the government placed a million people in lockdown in Wuhan after multiple infections. Economic recovery is suffering heavily from these strict measures, which have proven to be less effective against the omicron variant. In the second quarter, the world’s second largest economy grew by 0.4% compared to the same period last year. This is the weakest growth in gross domestic product since the start of the pandemic. The government had forecast 5.5% growth for this year, which does not seem realistic. Instead, experts expect around 4%.

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