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.
