China reported on Monday, April 18, three deaths from Covid-19 in Shanghai, the first officially announced since the start of containment at the end of March in the country’s economic capital. The Asian giant, which follows a zero Covid strategy, has so far officially recorded only 4,641 deaths linked to the coronavirus, initially discovered on its soil at the end of 2019.
In a statement posted on social networks, the Shanghai mayor’s office said that the three deceased were elderly and suffered from underlying illnesses. The two previous deaths announced in China had been announced in mid-March in Jilin province (northeast), bordering North Korea.
Shanghai is the scene of the worst viral contagion in China since the start of the epidemic, with tens of thousands of new cases announced daily. Its 25 million inhabitants have been placed in strict confinement since the end of March, many of them complaining, among other things, of supply problems.
Economic rebound
Despite the confinement in Shanghai and in several regions which heavily penalizes activity, Beijing announced, on Monday, a rebound in its economic growth in the first quarter (+ 4.8% over one year), The Chinese economy is facing “to significant challenges”however, acknowledged a senior official at a press conference.
Although subject to caution, the official figure for China’s gross domestic product (GDP) is still closely scrutinized given the country’s weight in the global economy. The announced increase was widely anticipated. In the fourth quarter of 2021, the GDP of the Middle Kingdom had increased by 4% over one year.
China, which for two years had largely brought the Covid-19 epidemic under control on its soil, is facing its worst outbreak of cases. As a result, tens of millions of people were confined in March, particularly in the technological metropolis of Shenzhen (south), or are still confined in the northeast of the country, the cradle of the automotive industry, as well as in Shanghai. .
Businesses at a standstill
Contrary to many countries that opt for “cohabitation” with the virus and lift restrictions, China continues to follow a zero Covid policy. These measures are seriously harming transport and supply chains and have brought many businesses to a standstill.
These difficulties came on top of those that had already weighed on the Chinese economy in recent months: sluggish consumption, regulatory tightening in several sectors such as real estate and technology, and uncertainties linked to the war in Ukraine.
In March, retail sales, the main indicator of household spending, fell by 3.5% over one year, after an unexpected acceleration in January-February combined (+ 6.7% over one year), the only data then published.