China's GDP may decrease if country continues to impose COVID-19 lockdown
Mar 16, 2022
Beijing [China], March 16 : China's Gross Domestic Product (GDP) growth could decrease by 1-2 per cent if Beijing, in order to fight the COVID-19 outbreak which is highest in the last two years, continues to impose lockdown in large portions of the country.
China is reporting the highest coronavirus outbreak in the last two years with over 1,400 new coronavirus cases per day and the Chinese authorities are struggling to deal with the deteriorating situation.
Most of the new local cases have been reported from eastern provinces like Jilin (Changchun as epicentre), Guangdong (Shenzhen as epicentre), Shandong and Shaanxi. Certain districts of Jiangsu province have announced monetary awards, up to 10,000 Yuan, for reporting violations of coronavirus rules.
In order to control the situation, the Chinese authorities have approved the Rapid Antigen Test (RATS) for use by its citizens giving up its earlier resistance to the Western practice. Over 300 medical workers have also been sent to Hong Kong to assist the local administration to control the ongoing pandemic.
Beijing may consider lockdown in large portions of China if the localized curbs and measures fail.
The lockdown would, however, curb domestic economic activity, slow down exports, disrupt global supply chains and decrease China's GDP growth by 1-2 per cent.
Earlier also, the effect of a slowdown in Shenzhen port in May-June 2021 had a wider impact than the closure of the Suez Canal.
