Economics
China’s Delta Outbreak Cuts Travel, Prompting GDP Downgrades
- At least 46 cities advised residents to refrain from traveling
- Nomura lowers GDP growth forecasts for third, fourth quarters
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China’s broadest Covid-19 outbreak since the beginning of the pandemic in late 2019 is hampering tourism and spending during the peak summer holiday, prompting analysts to review their economic growth projections as risks escalate.
Authorities rushed to close tourist sites, call off cultural events and cancel flights, as the outbreak linked to the highly-infectious delta variant spread to nearly half of China’s 32 provinces within just two weeks. At least 46 cities have advised residents to refrain from traveling unless it’s absolutely necessary.