The massive wave of infections after the end of the zero-corona policy had a significant impact on China’s economy in December. Experts do not anticipate a recovery until the end of the year.
The Purchasing Managers’ Index (PMI) published by the Chinese business magazine “Caixin” on Tuesday fell from 49.4 to 49 points in the previous month. If the index falls below 50 points, a decline in economic activity is assumed for the companies participating in the survey.
While lockdowns and the imponderables of the strict zero-corona 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.
China abruptly lifted its strict corona measures on December 7th. Since then, the virus has spread rapidly. Many metropolises resembled ghost towns at times because many people were sick and others hardly left their homes for fear of contagion. Hospitals are overcrowded and many crematoria can no longer cremate the corpses quickly enough.
The U-turn in corona policy was officially justified by the fact that infections with the new Omikron variants were no longer so difficult. But experts saw the reason above all in the fact that the strict measures could no longer be maintained in view of the explosive spread and the increasing resentment among the population.
After the current corona wave flattens out, economists expect the second largest economy to recover over the course of the year.