Shanghai Slowly Lifts COVID Lockdown
After more than two months of COVID-related lockdowns, Shanghai started lifting restrictions today. However, it will likely take some time for China's economy to recover, especially while the country's zero-COVID policy remains in place.
"There is still quite some uncertainty and a scare that if there is a positive case in the office building or in your compound, you might be locked down again," Bettina Schoen-Behanzin, a vice president of the European Union Chamber of Commerce in China, told the Associated Press.
Shanghai is China's commercial capital and home of the world's busiest port. During the lockdown, global manufacturing was disrupted and Chinese economic activity took a nosedive. Retail sales fell 11% year over year in April, auto sales fell by nearly half and private sector forecasters cut their economic growth estimates to 2%, per the AP.
"Even without further large-scale lockdowns, we think China's economy will struggle to return to full health," London-based research firm Capital Economics said in a note on Tuesday.