End of the zero-Covid policy: the corona wave is weighing on the Chinese economy

The surge in infections that followed the end of the zero-Covid policy weighed heavily on the Chinese economy in December. Scientists announce the release of a report on the evolution of the virus.

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

While the lockdowns and uncertainties caused by the strict zero-Covid policy have been the main culprit for economic weakness in China in recent months, the business is now burdened by the high number of infections. Experts predict a recovery this year as soon as the wave of infections has leveled off.

Forecast of one million deaths from corona

The world’s second-largest economy abruptly lifted its strict corona measures on December 7. Since then, the virus has spread rapidly. Many cities were sometimes emptied because many people were sick and others barely left their homes for fear of contagion.

The hospitals are overcrowded. The 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.

Awaited report on the development of the virus

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