Economics
China’s Economy Faces New Blow From Shanghai Lockdown
- Lockdown could cut GDP growth by 0.4 ppt, economist says
- Shanghai port remains open, SMIC maintains production
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Shanghai’s sweeping, two-phase lockdown will likely deal a heavy blow to businesses reliant on consumer spending, though economists say the city’s industrial sector can largely withstand the disruption, mitigating threats to the global supply chain.
The staggered eight-day lockdown in Shanghai -- a city of 25 million people -- and lingering effects from the measure may shave up to 0.4 percentage point from China’s economic growth in the first and second quarter, compared to a year ago, according to estimates by Liu Peiqian, China economist at NatWest Group Plc.