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China’s Economy Is in for More Pain as Virus Cases Persist

  • Bloomberg Economics sees retail sales growth weakening
  • Computer memory production cut, disruptions in port city

China’s strict Covid strategy is set to inflict more economic pain, potentially curbing consumer spending and disrupting production and shipping as virus outbreaks persist, economists say. 

The zero-tolerance policy on Covid-19 means any cases will be met with strong containment measures that stifle consumer spending, Bloomberg Economics said in a report Friday. Retail sales growth could weaken to as low as 3.7% this year from an estimated 13% in 2021 if there are more flare ups, economists Chang Shu and Eric Zhu estimate.