End of the zero-Covid policy: Corona wave burdens the Chinese economy

The wave of infections following the end of the zero-Covid policy weighed heavily on China’s economy in December. Scientists announce the release of a report on the evolution of the virus.

Economic output in Chinese companies continued to decline in December. The purchasing manager index of the Chinese business magazine “Caixin” for the manufacturing sector fell in December from 49.4 to 49 points compared to the previous month. A value below 50 indicates a decline.

While lockdowns and the uncertainties caused by the strict zero-Covid policy were primarily responsible for the economic weakness in China in the past few months, business has now been burdened by the high number of infections. Experts expect a recovery this year as soon as the wave of infections has flattened out.

One million corona deaths forecast

The second largest economy in the world abruptly lifted its strict corona measures on December 7th. Since then, the virus has spread rapidly. Many cities were swept empty at times because many people were sick and others hardly left their homes for fear of contagion.

Hospitals are overcrowded. Funeral homes and crematoria are in full swing. International health experts predict at least one million coronavirus-related deaths in China, the world’s most populous country, this year.

Virus development report awaited

The Chinese state media hardly reports on Corona and the severity of the current wave of infections. Numbers on infections and deaths are no longer published. After the World Health Organization called for more data from China, Chinese scientists are expected to provide a report on the evolution of the virus later in the day.